Liquid Network said on September 17 that block production, network transactions and L-BTC transfers had been operating normally since its restart, but peg-out operations remained paused. That distinction matters for Bull Bitcoin users because redeeming L-BTC back into BTC depends on the peg-out path, while Bull Bitcoin has separately said BULL Wallet relies on Boltz for Lightning payments and Liquid-to-Bitcoin swaps. The result is a narrower recovery than “network back to normal” may suggest: transfers resumed, but BTC redemption-linked functionality was still constrained.

Liquid transfers resumed, but peg-outs stayed paused

Liquid Network’s latest public status update answers the main user question directly: normal sidechain activity resumed, but L-BTC redemption into BTC did not. In its September 17 ecosystem update, Liquid said that since resuming on September 10, block production and network transactions, including L-BTC transfers, had operated normally, while peg-out operations remained paused as work continued with federation members and partners.

That distinction resolves the apparent contradiction between a functioning network and continued redemption problems. Sending L-BTC within the Liquid sidechain is not the same as completing a peg-out, which is the process that releases BTC on the Bitcoin main chain. So a wallet or exchange user can see transfers moving again and still be unable to redeem L-BTC back into regular BTC.

Status item	Current position
Liquid base network	Block production and network transactions resumed after restart
L-BTC transfers	Operating normally inside the Liquid network
Peg-outs	Still paused pending safe restoration
BULL Wallet dependency	Boltz supports Lightning payments and Liquid-to-Bitcoin swaps
Custody model	Bull Bitcoin says Boltz and BULL Wallet are non-custodial

For readers tracking whether the disruption is over, the practical answer is no: Liquid’s transfer layer was back, but the redemption path that matters for converting L-BTC into BTC was still offline. That leads directly to why Bull Bitcoin users continued to feel the impact through Lightning and swap-related features.

Bull Bitcoin’s disruption ran through Boltz and wallet swap flows

Bull Bitcoin’s user-facing disruption was tied to infrastructure dependencies rather than a stated loss of wallet custody. In a company notice, Bull Bitcoin said Boltz is the non-custodial swap infrastructure that BULL Wallet relies on for Lightning payments and for Liquid-to-Bitcoin swaps, and that Boltz had suspended its services until further notice. Bull Bitcoin also said user funds were not at risk because both Boltz and BULL Wallet are non-custodial by design.

A separate Bull Bitcoin product explainer helps show why that matters in practice. The company describes L-BTC as Liquid’s native bitcoin asset and says BULL Wallet includes an autoswap feature designed to convert L-BTC into on-chain BTC once a configurable threshold is reached, with 0.01 BTC cited as the default. In other words, the wallet is built to reduce the time a user stays exposed to L-BTC balances.

That makes the outage more specific than a broad “Liquid incident” label suggests. If Lightning payments and Liquid-to-Bitcoin swaps depend on external swap routes, and peg-outs remain paused at the network level, then payment and conversion features can remain impaired even while ordinary Liquid transfers are functioning again. The remaining issue, then, is not whether some network activity resumed, but what still cannot be stated cleanly about the incident timeline and restoration timetable.

What remains unresolved on timing and BTC accounting

The next confirmed milestone to watch is an official peg-out restoration notice, not a broad claim that the ecosystem is fully normal again. Liquid’s own update supports that narrower reading. By contrast, several widely circulated points remain less settled in the currently available source set, including the exact event year in some summaries, the full accounting for BTC reportedly withdrawn and later returned, and any live timetable for complete service restoration at Bull Bitcoin.

The reported figures around nearly 4,000 BTC withdrawn, about 3,400 BTC returned, and 598.50 BTC still held by the attacker have appeared in coverage of the incident, but the complete set was not presented in one located Liquid Network or Blockstream status notice alongside the current operational update. The same caution applies to a reported 30-day estimate for affected service recovery at Bull Bitcoin, which should not be treated as an active schedule without a dated company update.

The reliable takeaway is narrower but more useful: Liquid transfers and L-BTC movement inside the sidechain resumed, peg-outs did not, and Bull Bitcoin’s Lightning and Liquid-to-Bitcoin functions were exposed because they relied on the same broader conversion path. Until peg-outs restart and Bull Bitcoin publishes a fresh service update, redemption remains the real fault line rather than simple transfer activity.