Liquid Network loses $320M, CLARITY vote nears, Bitcoin ETFs shed $463M | Weekly recap

In this week’s edition of the weekly recap, a withdrawal of nearly 4,000 BTC forced Liquid Network to suspend transactions before operators began a limited restart. The U.S. CLARITY Act faced fresh doubts ahead of a Sep. 15 Senate vote, while spot Bitcoin ETFs lost $462.7 million over four trading sessions. Summary Liquid Network halted transactions after a withdrawal worth about $320 million; 3,400 BTC was later returned. Senators remained divided over the CLARITY Act before a Sep. 15 procedural vote requiring 60 votes. U.S. spot Bitcoin ETFs lost $462.7 million during the Sep. 8–11 trading week. The DOJ restrained more than $52 million in crypto while targeting the Xinbi Guarantee network. The Ethereum Foundation ranked 62 proposals for its planned Hegotá upgrade. Liquid Network restarts blocks after $320 million withdrawal An actor created unbacked L-BTC and withdrew approximately 3,996 BTC through an authorized peg-out service, according to crypto.news’ report on the Liquid Network incident. The withdrawal, first reported on Sep. 6, removed roughly 95% of the Bitcoin held in the sidechain’s federation wallet at the time. Liquid stopped transactions and peg operations while developers addressed a proof-verification flaw in its Elements software. Liquid said on Sep. 10 that its nodes had resumed producing blocks following an emergency update. Transactions and peg operations remained suspended. The actors returned 3,400 BTC, leaving about 598 BTC outside the federation wallet. Liquid called them “purported white-hat hackers,” reflecting the actors’ claim rather than confirming they had 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 open debate. 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 begin Senate debate; it would not pass the bill or make it law. Bitcoin ETFs lose $462.7 million as Ether funds gain 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. 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. Solana funds gained $9.7 million. The fund data showed a split between Bitcoin and Ether allocations as investors assessed U.S. inflation and the Federal Reserve’s Sep. 15–16 meeting.