Lombard Finance · Bitcoin · The Block
Elements v23.3.4 was released on Sept. 9 to address the vulnerability
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In its latest update, the Federation said it was preparing changes to governance and oversight, as well as additional technical and operational safeguards.
Key facts
- Liquid Federation board member and former Blockstream executive Samson Mow reported a 50 BTC deposit into the Federation wallet on Oct. 28, leaving 550 BTC outstanding
- The Liquid Federation announced Tuesday that the sidechain's bitcoin reserves are back to full 1:1 backing for all LBTC, nearly two months after an exploit in which approximately $320 million
- The attacker sent back roughly 3,400 BTC the next day after Blockstream, the developer of Liquid Network's underlying technology, patched the affected bridge nodes, but withheld about 600 BTC
- Another 300 BTC arrived on Monday, followed by a further 250 BTC later that day, bringing the reserves back to full backing
Summary
The Liquid Federation announced Tuesday that the sidechain's bitcoin reserves are back to full 1:1 backing for all LBTC, nearly two months after an exploit in which approximately $320 million in bitcoin was withdrawn from the network. Users have been able to swap Bitcoin BTC -0.92% and LBTC again for several weeks through participating providers. "We extend our sincere appreciation to the Bitcoin community, Liquid users, and ecosystem partners for their patience, understanding, and continued engagement throughout the recovery process," the Liquid Federation said. About 4,000 BTC was taken from Liquid's Federation wallet in the Sept. 6 exploit. "We will not be a party to the precedent that open-source software developed for the good of the Bitcoin community should subject its developers to paying a ransom that far exceeds their economic participation," Blockstream said at the time.