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. The Liquid Federation confirmed on November 3 that its reserves once again match the amount of LBTC in circulation, restoring the network’s intended 1:1 relationship with Bitcoin. However, questions remain about the security failure, the source of replacement funds, and when all withdrawal restrictions will disappear. We believe the recovery is encouraging, but rebuilding confidence will require more than restoring the missing Bitcoin.