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Liquid’s Bitcoin Reserves Fully Back Its Tokens Again as Board Member Points to Blockstream
The Liquid Federation says the roughly 600 BTC hole left by September's exploit is filled.
Dextape brief
The Liquid Federation said in an early Tuesday X post that the sidechain's reserves again match every LBTC one-for-one, ending a roughly 600 BTC shortfall dating to September. The post did not identify who supplied the bitcoin. Samson Mow, a Federation board member and former Blockstream employee, said on Monday that Blockstream provided the funds. Unchained's Tuesday check of Liquid's public dashboard found 4,270.54 BTC in reserves against the same amount pegged in, a 52-satoshi gap. The September flaw let an attacker mint about 4,000 LBTC without backing and pull bitcoin from the Federation wallet; the attacker later returned 3,400 BTC but kept roughly 598.5. Swaps have resumed at 1:1 through participating providers, though direct peg-outs remain unaddressed. The Federation also plans governance changes, with specifics promised later.
Why it matters: For Liquid users, the restored reserve match closes the September shortfall, yet the Federation's post left direct peg-outs unaddressed.
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Dextape context
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Terms in this story
- Exploit
- An attack that abuses a bug or design flaw in a protocol to take funds.
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