Liquid Network has resumed operation, but the peg-out that allows L-BTC to redeem Bitcoin has been suspended.
2026-10-12 09:36:27
CoinMeta data: According to CryptoBriefing, Liquid Network has resumed operations, but the peg-out feature for redeeming Bitcoin on L-BTC is still suspended, with a reserve shortfall of approximately 603 BTC. Liquid indicates that redemption requires covering all the L-BTC in circulation and completing a security audit. The incident began on September 6, 2026, when a software vulnerability caused about 3,996 to 4,000 BTC to leave the federal reserve, valued at around $320 million. Before the incident, the reserve was about 4,205, but it dropped to a minimum of 197. Individuals claiming to be white-hat hackers returned about 3,400 on September 7, leaving 598 to 603 unreturned. Networking and transactions resumed on September 10, but as of October 11, peg-out was still suspended. To restart, it is necessary to upgrade Elements, complete a security audit, and switch key management to cold storage. Blockstream CEO Adam Back states that the 1:1 anchoring will eventually be covered, but no specific date has been announced. USDT and tokenized physical assets were not affected.
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Source:Crypto Briefing
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