Liquid Network restores full 1:1 bitcoin backing for LBTC following $320 million exploit
The Liquid Federation has fully restored 1:1 bitcoin reserves backing all LBTC tokens about two months after a September exploit drained approximately $320 million.
The Liquid Federation announced that bitcoin reserves have been fully restored, re-establishing 1:1 native bitcoin backing for every LBTC token on the sidechain. The recovery comes roughly two months after a September exploit drained approximately $320 million from the network. While bitcoin-to-LBTC swaps had already resumed several weeks earlier through participating providers, the latest reserve restoration brings full backing back to the sidechain's circulating assets.[1][2][3][4]
A final transfer of 250 BTC closed the remaining reserve deficit left by the exploit, according to CoinDesk, which noted that the federation did not publicly state who funded the recapitalization. However, The Block reported that Liquid Network credited Blockstream with providing the funds to make the reserves whole.[5][6]
Following the reserve restoration, the federation confirmed that reserves remain independently verifiable through network nodes or a public dashboard. The organization is also preparing governance revisions and extra security measures, with further details expected in the coming weeks. Meanwhile, Blockstream CEO Adam Back stated that the sidechain's defenses have been hardened and cautioned developers against blindly trusting AI-suggested code fixes.[2][3][4]
Key facts
- Liquid Network restored full 1:1 bitcoin backing for all LBTC tokens after a September exploit that drained roughly $320 million.
- A final transfer of 250 BTC closed the shortfall created by the September exploit.
- The Block reported that Blockstream provided the funds to restore the reserves, while CoinDesk noted the federation had not disclosed who paid.
- Bitcoin-to-LBTC swaps had already resumed several weeks earlier through participating providers.
- Liquid Network reserves remain verifiable through nodes or a public dashboard, with further security and governance updates planned in the coming weeks.
- Blockstream CEO Adam Back reported that sidechain defenses have been hardened and warned developers not to trust AI-suggested fixes blindly.
Sources 路 6 sources
- DE
Decrypt@DecryptMediaPost on X 路
Liquid Network Restores Full Bitcoin Backing Two Months After $320M Exploit https://t.co/f7OgiWQggP
Open source - CB
Crypto Banter@crypto_banterPost on X 路
馃毃LIQUID NETWORK FULLY RESTORES 1:1 BTC BACKING FOR ALL LBTC! The Liquid Federation says bitcoin reserves are now fully restored, reestablishing 1:1 bitcoin:native backing for every LBTC after the September exploit that drained roughly $320 million. BTC-to-LBTC swaps resumed several weeks earlier through participating providers. The network鈥檚 reserves remain independently verifiable via nodes or the public dashboard. The Federation also said it is advancing governance updates and additional security measures, with more details expected in the coming weeks.
Open source - TB
The Block@TheBlockCoPost on X 路
THE BLOCK: Liquid Network has restored full 1:1 bitcoin bitcoin:native backing for all LBTC following September's $320 million exploit. The Liquid Federation said BTC-to-LBTC swaps had resumed several weeks earlier, with further security and governance changes planned. https://t.co/ijRo85eTZE
Open source - DE
DecryptArticle 路
Liquid Network Restores Full Bitcoin Backing Two Months After $320M Exploit Blockstream CEO Adam Back said the sidechain's defenses have been hardened, and warned developers not to trust AI-suggested fixes blindly.
Open source - CO
CoindeskArticle 路
Liquid鈥檚 bitcoin IOUs are fully backed again after a $320 million exploit A final 250 BTC transfer closed the hole left by September鈥檚 bug, but the federation behind the network still hasn鈥檛 said who paid to fill it.
Open source - TB
The BlockArticle 路
Liquid Network restores full bitcoin backing following $320 million exploit Liquid Network said its bitcoin reserves are back to full backing after September's exploit, with Blockstream providing the funds.
Open source