Liquid resumes transactions, peg-outs remain disabled; node operators urged to update Elements immediately

Blockstream relayed the Liquid Network status as of September 10, 19:55 UTC. The network has moved to the next recovery stage: block production has resumed, functionaries are signing and verifying blocks, and transactions are going through again. Peg-outs remain disabled as a precaution until the final recovery stage is complete. No timeframe has been given for their resumption. Testing, code scanning and network monitoring are ongoing in parallel. The source also reports that scammers are exploiting the situation by sending messages and promoting fake “update” websites.

Actions to take

If you run a Liquid node, update to Elements v23.3.4 right now: the source requires this to be done immediately. The message does not say exactly what this release fixes. Download the update only through official Liquid Network and Blockstream channels, rather than links in messages or third-party sites. According to the source, ordinary users do not need to do anything at present. Do not send funds to unfamiliar addresses or disclose your seed phrase or private keys to anyone in response to unsolicited messages.

Source: x.com - Liquid_BTC

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06 Sept~4,000 BTC withdrawn from Liquid Federation wallet; Liquid network suspended
07 SeptAbout 4,000 BTC withdrawn without authorization from Liquid Federation wallet; some already returned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