A Bitcoin transaction associated with the Liquid Network recovery returned 3,400 BTC on September 7. The transfer was confirmed in block 965,950 at 16:09 UTC, according to the block explorer record. The receiving address is identified as the Liquid Federation peg wallet in Bitquery’s published investigation. Transaction record, Bitquery’s investigation and transaction references.
The same transaction sent approximately 598.5 BTC back to its sending address. That is an output recorded at the time of the transfer, not a claim about the address’s current balance or an agreed reward. The transaction establishes a movement of funds; it does not establish the actors’ motives or the terms of any private agreement. On-chain outputs.
In a separate update dated September 7, Blockstream said updated software had been deployed and Liquid Federation members were preparing a coordinated restart. It said work to harden the network and secure the return of assets was continuing. The statement did not announce a completed restart or specify when normal service would resume. Blockstream update.
Liquid operates as a separate Bitcoin sidechain, built with Elements software and connected to Bitcoin through a two-way peg. Its federation model and operating rules differ from Bitcoin’s base layer. A problem affecting Liquid’s backing or operation should therefore be described at that scope, rather than as a compromise of Bitcoin consensus. Liquid technical documentation.
For services integrating Liquid, asset recovery and service restoration are separate milestones. The confirmed transfer answers how much moved in that transaction. Restart confirmation and a technical incident report are still needed to assess restored functionality and the cause of the incident.