{"id":77981,"date":"2026-09-10T14:51:06","date_gmt":"2026-09-10T14:51:06","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/liquid-network-resumes-block-production-after-4000-btc-exploit-bitcoin-news\/"},"modified":"2026-09-10T14:51:06","modified_gmt":"2026-09-10T14:51:06","slug":"liquid-network-resumes-block-production-after-4000-btc-exploit-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/liquid-network-resumes-block-production-after-4000-btc-exploit-bitcoin-news\/","title":{"rendered":"Liquid Network Resumes Block Production After 4,000 BTC Exploit \u2013 Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Liquid resumed block production after a 4,000 BTC exploit froze network transactions and pegs.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The hacker returned 3,400 BTC but demanded a 10% bounty, threatening to keep the remaining ~600 BTC.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blockstream pledged to cover all L-BTC 1:1, reassuring users while working to patch system vulnerabilities.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Liquid Resumes Operations After Hacking Incident<\/h2>\n<p>The Liquid network sidechain, launched in 2018 by Blockstream, is slowly resuming its normal operations after facing <a href=\"https:\/\/news.bitcoin.com\/security\/we-are-whitehats-nearly-4000-btc-drained-from-blockstreams-liquid-peg\/\">one of the largest hacking incidents in 2026<\/a>.<\/p>\n<p>On social media, the <a href=\"https:\/\/x.com\/Liquid_BTC\/status\/2098025275921490281?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">Liquid team announced<\/a> that the network had <strong>\u201centered the next phase of its controlled resumption,\u201d<\/strong> reporting that block production had resumed without transactions while it monitored the network\u2019s stability.<\/p>\n<p><strong>\u201cPeg operations, including PAK-authorized peg-outs, remain suspended while work continues on the final recovery stage: restoring the BTC\/LBTC reserve is in progress,\u201d<\/strong> Liquid highlighted.<\/p>\n<p>After the network suffered an exploit that allowed a white-hat hacker to withdraw 4,000 BTC from the federation wallet on Sunday, operations had been halted, leaving users holding other assets, like stablecoins, unable to take control or move them.<\/p>\n<p>After the incident, Blockstream has been in constant communication with the hacker via onchain messages. The hacker has since<a href=\"https:\/\/news.bitcoin.com\/security\/liquid-hackers-return-3400-btc-keep-47m-as-network-stays-frozen\/\"> returned 3,400 BTC and kept almost 600 BTC,<\/a> but communication is still ongoing, and Blockstream has stressed that it is pursuing the recovery of the remaining funds.<\/p>\n<p>Adam Back, founder and CEO of Blockstream, referred to the coverage of L-BTC, an asset that represents BTC but on the Liquid sidechain. Back <a href=\"https:\/\/x.com\/adam3us\/status\/2098004282133864846?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">clarified that the L-BTC peg with BTC will be covered<\/a>, allowing users to withdraw their L-BTC and obtain the same amount of tokens on the Bitcoin network, but he did not explain how the near-600 BTC hole will be covered when resuming peg-out operations.<\/p>\n<p><strong>\u201cDo not panic sell OTC,\u201d<\/strong> Back said, revealing that the Liquid team was working on system updates to resume peg-in\/out operations later, without specifying a timeframe.<\/p>\n<p>On September 9, the anonymous white-hat hacker <a href=\"https:\/\/mempool.space\/tx\/f7055f6c8dd00f404e48c12483ae740180f658db206733505bb27b015e579588\" target=\"_blank\" rel=\"noopener noreferrer\">criticized Blockstream\u2019s security budget,<\/a> disclosing that the company allocated only $1.5 million to secure $5 billion in assets. <strong>\u201cYour dereliction of duty is obvious,\u201d <\/strong>he assessed, stating that failing to pay a 10% bug bounty would result in the loss of the unreturned assets.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/crypto-news\/liquid-network-resumes-block-production-after-4000-btc-exploit\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Liquid resumed block production after a 4,000 BTC exploit froze network transactions and pegs. The hacker returned 3,400 BTC but demanded a 10% bounty, threatening to keep the remaining ~600 BTC. Blockstream pledged to cover all L-BTC 1:1, reassuring users while working to patch system vulnerabilities. [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":77982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77981"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77981"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77982"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}