Liquid Network restores full Bitcoin backing after September hack
Image: DecryptThe Liquid Network announced on November 3 that its Bitcoin reserves are fully restored, reestablishing a 1:1 peg for LBTC tokens. The recovery follows a September 6 exploit that drained about 4,000 BTC, roughly $320 million. Users can again swap BTC and LBTC through participating providers. The federation added new reserves, bringing total backing to around 4,270 BTC.
Key points
- The attack exploited a vulnerability in the Elements software that underlies Liquid.
- Users have regained access to BTC‑LBTC swaps via participating providers.
Why it matters
Restoring the 1:1 backing reassures users that LBTC retains its peg, but lingering security questions may affect confidence in the sidechain.
What's unclear
The source of the replacement Bitcoin is unclear, with one report citing Blockstream and the other not specifying.
It is unknown when all withdrawal restrictions and security safeguards will be fully lifted.
Price context · BTC
At publication
$77,228.00
Now
$77,401.00
Change since
+0.22%
7 days · dashed line = publication
Sources · 5 publishers
Decrypt
Tier 1
Liquid Network Restores Full Bitcoin Backing Two Months After $320M Exploit
The Block
Tier 1
Liquid Network restores full bitcoin backing following $320 million exploit
Crypto.news
Tier 2
Liquid Network says LBTC is fully backed again after September hack
Bitcoinist
Tier 2
Liquid Network Restores Bitcoin Backing After Major Hack
Coverage timeline
- First reported by The Defiant
- Also reported by Decrypt
- CryptoVideos brief published
How this page is checked. AI drafted this brief from selected independent reports. Automated checks compare numbers, source coverage and topic terms, but may miss errors. Publication and evidence refreshes run automatically. Read the linked reports for context. Report an error
