Turn off your VPN, bro. Please, bro. Bro.

LIQUID NETWORK UPDATE: ECOSYSTEM ACTIVITY Status as of September 17, 2026, 21:05 UTC Network and Ecosystem Status Since resuming on September 10, block production and network transactions, including LBTC transfers, have operated normally. Peg-out operations remain paused while work continues with Federation members and partners toward their safe restoration. Markets and services across the ecosystem are back online. @mifielfirma has resumed the issuance and transactions of its digital promissory notes, with batches confirming normally. At the exchange level, @BTSE_Official reports that its platform has re-enabled USDT-Liquid transfers and the asset is unaffected by the incident. @AquaBitcoin reports that Liquid asset transfers and peg-ins are available. Its new swap feature, Indra, is also live, enabling swaps between LBTC and Lightning BTC, although liquidity remains limited. Other wallets are restoring core functionality as well. @BULLBITCOIN_ and the @Blockstream App report that Liquid asset transfers are available, although LBTC<>BTC and LBTC<>Lightning swap routes on those services remain unavailable until peg-outs are restored. Meanwhile, other non-LBTC swap services are returning, with @sideshiftai re-enabling cross-chain swaps for $USDT and $DEPIX on Liquid. Please note service availability varies by provider, and users should confirm deposit, withdrawal and swap availability through each provider’s official channels. BTC Recovery and Peg-Outs As previously reported, 3,400 BTC of the ~4,000 BTC withdrawn on September 6 has been returned to the Federation reserve. Approximately 600 BTC remains unreturned, and efforts to pursue its recovery continue. We understand that the central question for LBTC holders is when peg-outs will resume. While we are not yet able to provide a firm date, peg-outs will resume only after full 1:1 BTC backing for LBTC has been confirmed and all required software updates, testing and independent security reviews have been completed. The Liquid Federation members and Blockstream will share the plan and timing for resuming peg-outs as soon as they are finalized. Technical Post-Mortem The root cause and exploit path have been identified, and the immediate fix was released in Elements v23.3.4. A comprehensive technical report detailing the incident will be released as soon as it is available. Thank You The Liquid Federation and Blockstream sincerely thank Federation member companies, ecosystem operators, developers, security researchers, and users for their continued work, patience and support throughout the recovery process.

To those responsible for the theft of bitcoin from the Liquid Network: Blockstream will not pay a ransom for the return of stolen funds. Taking assets without authorization and withholding their return is a crime, not responsible disclosure. It is not white-hat activity. It is theft. We have engaged in good faith in an effort to secure the return of stolen user funds and protect the broader Bitcoin community. That effort should not be mistaken for acceptance of the actions taken nor of the terms being demanded. We will not be a party to the precedent that open-source software developed for the good of the Bitcoin community should subject its developers to paying a ransom that far exceeds their economic participation. Bitcoin is hard money and can’t be minted without costs, Bitcoin doesn’t haircut users to pay a ransom. To the Bitcoin community: We are fighting for what we believe in, for the users whose funds were taken, and for the principles on which Bitcoin was built. The community has demonstrated incredible resolve with teams of people dedicating their time in support of each other to identify and patch vulnerabilities in each other's products and systems. We are all driven by the mission that Bitcoin is the single best asset, for every person, company, and institution on the planet to invest, use, and build on. The world is a different place with the advancements of AI, and the Bitcoin community has responded with force to combat that threat. Damage has been done, battles have been lost, but on the whole the Bitcoin community is gaining ground in the war with bad actors. We want to thank the community for those efforts, for your support in hardening the network, helping users recover funds, and for your support in our assertion that crime does not deserve rewards. To those holding the stolen bitcoin: There is still an opportunity to resolve this responsibly. The bitcoin can be returned and we can revert to the standard of white-hat principals. However, if the funds are not returned, we will pursue every lawful avenue available to us. We will work with law enforcement, exchanges, service providers, forensic specialists, and other relevant parties to trace and recover the assets and identify those responsible. More importantly, Bitcoin is transparent by design and the community is made up of the most sophisticated engineers, cryptographers, and white-hat hackers globally. Transactions do not disappear, and neither does the evidence they leave behind. We will not pay for the return of stolen property. We will not abandon our users. The Bitcoin community will not stop pursuing the funds. Return the bitcoin.

LIQUID NETWORK UPDATE: OPERATIONS RESUMED, RECOVERY ONGOING Status as of September 10, 2026, 10:00 UTC Recovery Status The Liquid Network has entered the next phase of its controlled resumption. As a precautionary measure, block production has resumed without transactions while the network is monitored to confirm full stabilization. Blockstream confirms that the required functionary and bridge node updates have been successfully deployed. Functionary nodes are signing and validating blocks as intended. Peg operations, including PAK-authorized peg-outs, remain suspended while work continues on the final recovery stage: restoring the BTC/LBTC reserve is in progress. Reminder: Beware of Scams There are reports of scammers attempting to exploit the situation through fraudulent update sites and messages. Please rely only on official Liquid Network and Blockstream channels. Never send funds or disclose private keys or seed phrases in response to unsolicited communications. Thank You The Liquid Federation and Blockstream sincerely thank the broader Bitcoin community and security teams for their assistance and continued support during this challenging time. Safely restoring full operations remains the highest priority.

Following the recent incident affecting the Liquid Network and the movement of funds, Blockstream, as Liquid’s technical provider, and the Liquid Federation have been working diligently to resolve the ongoing situation and ensure the return of assets. Updated software has been deployed as the Federation members prepare the network for a coordinated restart. Our teams remain focused on further hardening the network. We want to thank the broader Bitcoin community for their patience, support, advice, and assistance throughout this process. We will continue to provide updates as progress is made.