Liquid Network is slowly coming back online after getting rekt for ~4,000 $BTC (~$320M) via an Elements software exploit.
The attacker minted unbacked tokens and drained the federation wallet. After emergency patches and on-chain negotiations, they returned 3,400 $BTC and kept 600 $BTC as a "bounty."
Blocks are being produced again but with zero transactions as a safety measure. Peg operations and normal txs still paused while they monitor stability.
Blockstream says functionary and bridge nodes are updated and signing blocks normally. Full recovery still in progress.
This is why you don't trust federated sidechains with serious capital.
The attacker minted unbacked tokens and drained the federation wallet. After emergency patches and on-chain negotiations, they returned 3,400 $BTC and kept 600 $BTC as a "bounty."
Blocks are being produced again but with zero transactions as a safety measure. Peg operations and normal txs still paused while they monitor stability.
Blockstream says functionary and bridge nodes are updated and signing blocks normally. Full recovery still in progress.
This is why you don't trust federated sidechains with serious capital.