Liquid Network entered a controlled recovery phase after a hacker attack, restoring block production as a precaution while keeping transaction processing suspended. Blockstream said updates for the required Functionary and bridge nodes had been successfully deployed, with Functionary nodes signing and verifying blocks as expected. Peg-out operations, including PAK-authorized transactions, remained paused while the network moved through final recovery steps, including restoration of BTC/LBTC reserves.