Liquid Network Restores Bitcoin Backing After Major Hack
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.
BITCOINIST EDITORBitcoinist · November 3, 2026 · 12h agoBrief · 1 min read
Nearly two months after a $320 million exploit hit its Bitcoin sidechain, Liquid Network has restored full backing for its LBTC tokens. The Liquid Federation said on November 3 that its reserves again match LBTC in circulation. Deposits of 50 BTC, 550 BTC and a final 250 BTC closed the gap. The September 6 attack exploited a flaw in Elements, the underlying software, letting an attacker create about 4,000 LBTC without deposits and swap them for Bitcoin through SideSwap. Roughly 600 BTC remained missing after the attacker returned 3,400 BTC, and Samson Mow, a federation board member, identified Blockstream as the source of replacement funds. Direct federation withdrawals remain under enhanced controls.
Why it matters: The restored reserves matter because LBTC depends on users being able to exchange tokens for Bitcoin, which the full backing again supports.
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