By Isaac • November 3, 2026 7:57 am •
Liquid Network says every unit of its tokenized Bitcoin is fully backed again, closing a reserve gap left by one of the largest bridge exploits of the year.
The report from Decrypt says the Liquid Federation has restored enough Bitcoin to reestablish 1:1 backing for all LBTC. That is the central promise of the sidechain: users lock BTC with the federation and receive an equivalent amount of LBTC for faster, more private transfers.
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The restoration matters because the September incident did not end with every coin coming home. Attackers described as purported white hats removed roughly 4,000 BTC, then worth about $320 million, from Liquid’s federation wallet.
About 3,400 BTC was returned after bridge nodes were
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