Liquid Network resumed producing blocks on Sep. 10 after an emergency fix, but transactions stayed frozen following a withdrawal worth about $320 million. The Senate's CLARITY Act faces a tight 60-vote test on Sep. 15, and U.S. spot Bitcoin ETFs shed $462.7 million over four sessions as the market weighed inflation data ahead of the Fed's meeting.
Liquid Network restarts blocks after $320 million withdrawal
An actor created unbacked L-BTC and withdrew about 3,996 BTC through an authorized peg-out service, removing roughly 95% of the Bitcoin held in the sidechain's federation wallet at the time. Liquid halted transactions and peg operations while developers addressed a proof-verification flaw in its Elements software.
Liquid said that its nodes had resumed producing blocks on Sep. 10 following an emergency update, though transactions and peg operations remained suspended. The actors returned 3,400 BTC, leaving about 598 BTC outside the federation wallet. According to crypto.news: "purported white-hat hackers", reflecting the actors' own claim rather than confirmed authorization.
CLARITY Act faces a 60-vote Senate test
Republican senators warned that the CLARITY Act might lack the votes to advance when the Senate holds a procedural vote on Sep. 15. The measure needs 60 votes to advance, and with Republicans holding 53 seats, supporters would need at least seven Democrats or independents if every Republican backed the motion.
Sen. Cynthia Lummis blamed Democratic demands for the impasse, while other lawmakers pointed to unresolved ethics provisions involving government officials' crypto interests. Stablecoin rewards and protections for decentralized finance developers also remained disputed. A successful procedural vote would open Senate debate; it would not pass the bill or make it law.
Bitcoin ETFs shed $462.7 million as inflation data lands
U.S. spot Bitcoin ETFs recorded $462.7 million in net outflows from Sep. 8 through Sep. 11, according to Farside Investors data cited by crypto.news. Monday's Labor Day closure left four trading sessions, and the funds posted outflows in each one; Thursday's $282.7 million loss was the largest of the week. Ethereum ETFs finished the period with $196.9 million in net inflows after attracting $216.4 million on Friday alone.
The split came as Bitcoin fell below $78,000 on Sep. 10 after U.S. producer inflation exceeded forecasts, touching about $76,676. It recovered above $78,000 on Sep. 11 after consumer prices rose 3.4% from a year earlier, meeting headline forecasts.
Polymarket traders priced an 81% chance of a quarter-point Fed rate increase at the Sep. 15–16 meeting.
Source: crypto.news
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