Bull Bitcoin Users Face Up to 30‑Day Wait to Convert L‑BTC Back to BTC After Liquid Hack

Canadian exchange Bull Bitcoin announced that customers cannot currently convert their Liquid‑network Bitcoin (L‑BTC) back to native Bitcoin (BTC) on the platform. The restriction stems from the September 6 hack of the Liquid Network, in which roughly 4,000 BTC were stolen.

Background of the Liquid Network breach

On September 6, attackers withdrew about 4,000 BTC from the Liquid Network. After negotiations, approximately 3,400 BTC were returned to Blockstream, the network’s operator. The attackers retained 598.50 BTC, valued at over $51 million, and have not responded to Blockstream’s demand for restitution.

Impact on L‑BTC peg‑outs

Blockstream has paused L‑BTC “peg‑out” operations— the process that converts L‑BTC to BTC— for more than two weeks. The network resumed block production on September 10, but peg‑outs remain halted while federation members work on a safe restoration.

Bull Bitcoin’s response

Bull Bitcoin posted on X that it must wait for the federation to resume peg‑outs before it can offer L‑BTC‑to‑BTC swaps. The exchange also disabled inbound Lightning Network payments to avoid exposing users to the risk of holding L‑BTC without a guaranteed exit path. Bull Bitcoin estimates, based on current information, that peg‑out services could return within 30 days, describing this as an “educated guess” rather than a guarantee.

Community reaction

Users on X expressed frustration with the timeline, urging immediate restoration of peg‑outs and criticizing Blockstream and federation members for the delay.

Current status

As of the latest updates, the Liquid Network’s official channel has not posted a new status, and the 598.50 BTC held by the attackers remains unrecovered.