Liquid Network says LBTC is fully backed again after September hack

Liquid Network has restored full Bitcoin backing for its LBTC tokens nearly two months after a software exploit drained most of the sidechain’s reserves, although direct withdrawals remain restricted. Summary Liquid Network has restored 1:1 Bitcoin backing for LBTC following a September exploit that drained nearly 4,000 BTC. Four deposits totaling roughly 602.5 BTC completed the reserve recovery, including a final 250 BTC transfer on November 2. Samson Mow attributed the replacement funds to Blockstream, although the federation has not published a funding breakdown. BTC and LBTC swaps have resumed through participating providers, while direct federation withdrawals remain restricted. The federation plans governance changes and additional safeguards following the security failure. In a Tuesday statement, the Liquid Federation confirmed that reserves were “fully restored, reestablishing 1:1 BTC backing for all LBTC.” The announcement followed several Bitcoin transfers into the federation’s reserve wallet, including a final 250 BTC deposit on November 2. Blockchain records showed approximately 4,268.95 BTC backing an equivalent amount of LBTC when the shortfall was closed. Update from...