Liquid Network has restored block production and regular transactions following the $320 million security incident on Sept. 6, while peg-outs that convert LBTC back into Bitcoin remain suspended. Approximately 3,400 of roughly 4,000 BTC withdrawn in the exploit has returned to the Federation reserve, leaving about 600 BTC unrecovered. Liquid said the exploit drained 95% of its Federation peg wallet in a single transaction. Several ecosystem services have resumed. Mifiel restarted issuance and processing of digital promissory notes, while Aqua restored Liquid asset transfers and peg-ins. Aqua's Indra swap feature also enables swaps between LBTC and Bitcoin on the Lightning Network, although liquidity is limited. Services requiring an eventual LBTC peg-out remain restricted. Liquid identified the technical exploit path and released a fix in Elements v23.3.4, the software underpinning the network. Peg-outs will restart only after Liquid confirms full one-to-one LBTC backing, completes software updates and testing, and undergoes an independent security review. Blockstream, Liquid's maintainer, refused the associated ransom demand.