Bitcoin · Lombard Finance · Bitcoin.com News
This closes the 600 BTC ($46 million) shortfall in almost two months
Compiled by KHAO Editorial — aggregated from 3 sources. See llms.txt for citation guidance.
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Participating swap providers had already restored BTC and LBTC swaps several weeks ago at a 1:1 rate.
Key facts
- The attacker returned 3,400 BTC the following day but retained almost 600 BTC as a 10% bounty for finding the bug
- According to Liquid Network explorer data, 4,270.54 LBTC ($327 million) are currently in circulation, backed by the same amount of bitcoin
- On Sept. 6, an attacker exploited a vulnerability in the Liquid Network’s Elements software, stealing almost 4,000 BTC from the protocol
- Bitcoin giant Blockstream (valued at $3.2 billion in 2021) develops the Elements software, while the Liquid Federation oversees the network
Summary
As crypto asset market participants and users jump from one hack story to another, the Liquid Network, a Bitcoin sidechain that suffered a hack in September, has finally restored its bitcoin (BTC) reserves. Liquid Network has fully replenished its bitcoin reserves, restoring 1:1 backing for LBTC. The September hack left a nearly 600 BTC shortfall after the attacker returned 3,400 BTC. Liquid Network plans governance changes and additional technical safeguards following the incident. “250 BTC added, closing out the remaining shortfall,” Samson Mow, Blockstream’s former chief security officer, posted on X shortly before the team behind Liquid Network confirmed that its reserves were fully replenished on Nov. 2.