Liquid Network Restores Bitcoin Backing After Major Hack

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Liquid Network has restored full Bitcoin backing for its LBTC tokens, marking a vital recovery milestone nearly two months after a security exploit drained $320 million from the Bitcoin sidechain. The Liquid Federation confirmed on November 3 that its reserves once again match the amount of LBTC in circulation, restoring the network’s intended 1:1 relationship with Bitcoin. However, questions remain about the security failure, the source of replacement funds, and when all withdrawal restrictions will disappear. We believe the recovery is encouraging, but rebuilding confidence will require more than restoring the missing Bitcoin. Liquid Network Bitcoin Reserves Return to Full Backing Liquid Network has confirmed that every LBTC token is once again backed by an equivalent amount of Bitcoin. The announcement follows several deposits into the federation’s reserve wallet, including 50 BTC on October 28 and two larger transfers totaling 550 BTC on November 2. The final 250 BTC deposit eliminated the remaining deficit. At the latest reported snapshot, approximately 4,270 BTC backed a matchi...