Liquid Network releases emergency fix: Elements v23.3.4 fixes Proof verification cache vulnerability

Liquid Network has released the latest update stating that the emergency version Elements v23.3.4 is now online. Functionary nodes have immediately begun upgrading and all Liquid node operators are advised to synchronize updates. This version addresses the previously discovered Proof verification cache vulnerability and strengthens the cache keys used for Range Proof.

Regarding network recovery, Blockstream states that it is still formulating a recovery plan, which is expected to proceed in three phases: restoring block production while continuing to suspend Peg operations; replaying verified valid transactions; and restoring Peg operations after the network status is fully restored and funds are confirmed to be returned. Currently, the first two phases are being tested in parallel, and any phase will only advance once safety is confirmed. Liquid Network indicates that Elements v23.3.4 has completed multiple rounds of internal and external reviews, with participants including the Bitcoin Red Team, Alpen Labs, and other teams.

At the same time, Liquid Network reminds users to be vigilant against fraudulent upgrade websites exploiting this incident. Information should only be obtained through official Liquid Network and Blockstream channels, and users should never send funds to strangers or disclose private keys or recovery phrases.