Crypto : Liquid Restarts After the Exploit, but the Network Runs on Empty

Liquid Network has resumed producing blocks after the attack that allowed the creation of nearly 4,000 LBTC not backed by bitcoins. The network is operational again, but users must still wait before they can make transactions or convert their BTC into L-BTC.

In brief

Liquid restarts producing blocks

The resumption does not yet mean a return to normal. Liquid has restarted block production but without allowing user transactions. This step aims to allow operators to verify that the network works properly before gradually reopening other services.

The flaw exploited on September 6 concerned Elements, the open-source software used by Liquid. According to the report published by the team, the vulnerability affected the way nodes cached the verification of range proofs. The exploitation allowed the creation of about 4,000 LBTC that were not backed by the bitcoins held in the reserve.