Liquid Network announced on Tuesday that the network has resumed operations and entered "the final phase of recovery with enhanced security" after hackers stole 4,000 Bitcoin (worth approximately $320 million at the time) over a month ago. The hackers exploited an inflation vulnerability on the Liquid sidechain to create non-existent LBTC tokens and exchange them for on-chain BTC. Most of the stolen funds have been returned through a "white hat" operation, but the hackers still hold approximately 600 Bitcoin, valued at nearly $50 million. The final phase of recovery includes rebuilding the network's full 1:1 Bitcoin backing and reactivating federated withdrawal functionality for authorized PAK key holders.