Liquid Network has resumed controlled block production four days after a consensus bug in the open-source Elements software enabled attackers to mint about 4,000 unbacked LBTC and withdraw roughly 4,000 BTC from the federation reserve. Blocks are being produced without user transactions while functionary and bridge nodes are monitored and updated, and peg-in and peg-out operations remain suspended. The emergency Elements v23.3.4 release strengthens cache keys used for Range Proof verification. Whitehat actors returned 3,400 BTC, leaving about 598.5 BTC, worth roughly $47 million at the time, outstanding. Blockstream is testing a staged recovery, while Chief Executive Officer Adam Back said the LBTC-to-BTC peg would be covered 1:1, without explaining how the reserve shortfall would be funded.