
Liquid Network Restores Full Bitcoin Backing Two Months After $320M Exploit
Liquid Network, the Blockstream-built Bitcoin sidechain, said on 3 November 2026 that its reserves are fully restored and all LBTC is backed 1:1 again. About 4,000 BTC (roughly $320M) was withdrawn from the federation wallet on 6 September 2026 by self-described white-hat hackers, who returned 3,400 BTC and kept about 598 BTC. Adam Back listed fixes: refreshed peg-out keys in cold hardware wallets, disabled proof validation caches with a node bug fix, and fail-closed consensus rules.
Blockchain, Threat Intel· Published and added 3 Nov 2026






































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