Blockstream deployed updates to functionary and bridge nodes on September 10 to begin a controlled resumption of the Liquid Network. Block production is currently running without transactions as operators monitor for full stabilization before allowing user activity. Peg operations, including PAK-authorized peg-outs, remain suspended while the team restores the BTC/LBTC reserve.

The outage followed a range proof cache bug in the Elements software that allowed the unauthorized minting of 4,000 fake L-BTC. Approximately 3,400 BTC were returned to the federation, leaving 598.5 BTC currently held by the actor. Blockstream issued an emergency patch, Elements v23.3.4, and is implementing a three-stage recovery plan to replay valid transactions before fully reopening peg operations.