THE BLOCK · 2026-11-03 11:49 UTC

Liquid Network restores full bitcoin backing following $320 million exploit

Liquid Network's bitcoin reserves are fully restored after a September exploit that removed approximately $320 million (4,000 BTC), with Blockstream providing the missing bitcoin to close the gap. Blockstream deposited 600 BTC across three transactions in late October and early November to replenish reserves after the attacker withheld that amount and demanded a 10% bug bounty. The exploit stemmed from a bug in Elements software involving cached range proof verifications that allowed creation of unbacked LBTC; the vulnerability was patched on September 9.

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