Blockstream deploys updated software and prepares a coordinated restart of the Liquid network

Following the incident involving unauthorized withdrawals from Liquid's federation wallet, Blockstream and Liquid Federation members have deployed updated software and are preparing a coordinated network restart to further strengthen security. This is a new step compared with earlier updates: there was no fix then; now the software has been rolled out and preparations for a restart are underway.

Actions to take

Operators of infrastructure and services on Liquid should follow official Blockstream announcements about the network restart and restoration of peg-in/peg-out and L-BTC withdrawals, and should not resume automated operations until the restart is confirmed.

Source: x.com - Blockstream

Incident history

06 Sept~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
07 SeptAbout 4,000 BTC withdrawn without authorization from Liquid Federation wallet; some already returned
08 SeptBlockstream deploys updated software and prepares a coordinated restart of the Liquid network
08 SeptBlockstream identifies cause of Liquid incident: range proof vulnerability in the Elements protocol
08 SeptBlockstream: Liquid network restart expected in 4–5 days
09 SeptFollowing the Liquid incident, a wave of phishing impersonating Blockstream and Liquid
10 SeptLiquid produces blocks again, but without transactions for now; peg operations remain suspended
10 SeptLiquid transactions are going through again; peg operations remain suspended for now
10 SeptLiquid resumes transactions, peg-outs remain disabled; node operators urged to update Elements immediately