Liquid Network Restores Full Bitcoin Backing Two Months After $320M Exploit
Summary
The Liquid Federation says it has restored full 1:1 Bitcoin backing for all LBTC, about two months after attackers withdrew roughly 4,000 BTC from Liquid’s federation wallet. Attackers returned 3,400 BTC after the network was patched but kept about 598 BTC; the federation did not explain how the remaining shortfall was covered. Blockstream CEO Adam Back cited new cold-storage peg-out keys, a bug fix and hardened consensus rules as security improvements. Liquid is also changing its governance and adding safeguards.
