Liquid Network has resumed block production in a restricted mode after an Elements software vulnerability enabled attackers to mint roughly 4,000 unbacked L-BTC and withdraw about 3,996 BTC from the federation reserve. About 3,400 BTC was returned after Blockstream deployed patches, but approximately 598.5 BTC, valued at about $46 million, remains under attacker control. User transactions, peg-ins and peg-outs remain suspended while the federation works to restore full BTC backing for L-BTC. Blockstream has refused to pay a ransom and said it could pursue legal action if the outstanding funds are not returned.