Liquid Network has begun an independent external security audit of Elements v23.3.4 as part of its staged plan to restore peg-out operations after a September security incident. The Liquid Federation is replacing existing Peg out Authorization Key (PAK) entries and working to ensure the Bitcoin receiving keys associated with peg outs are secured in cold storage. Peg outs remain suspended, and Liquid has not provided a restart date. The work follows an exploit on Sept. 6 in which an attacker created roughly 4,000 unbacked LBTC and used the normal peg-out process to withdraw approximately 3,996 BTC from the federation reserve. Liquid later resumed block production and user transactions after deploying the software fix, while peg outs remained the final restricted operation. About 3,400 BTC was subsequently returned, leaving approximately 602 BTC subject to recovery efforts, according to the network's incident assessment.