Liquid Network entered a controlled recovery phase at 10:00 UTC on Sept. 10, restoring block production as a precaution while continuing to pause transaction processing. Blockstream said the required Functionary and bridge-node updates had been successfully deployed, with Functionary nodes signing and validating blocks as expected. Peg-out operations, including PAK-authorized peg-outs, remain suspended while the network undergoes final recovery steps, including restoring BTC/LBTC reserves. Liquid Network also warned users about scams exploiting the incident through fake update websites or messages and urged them not to send funds to unfamiliar channels or disclose private keys or seed phrases.