Liquid Network says LBTC is fully backed again after September hack

Liquid Network has restored full Bitcoin backing for its LBTC tokens nearly two months after a software exploit drained most of the sidechain's reserves, although direct withdrawals remain restricted. Liquid Network has restored 1:1 Bitcoin backing for LBTC following a September exploit that drained nearly 4,000 BTC. Four deposits totaling roughly 602.5 BTC completed the reserve recovery, including a final 250 BTC transfer on November 2. Samson Mow attributed the replacement funds to Blockstream, although the federation has not published a funding breakdown. BTC and LBTC swaps have resumed through participating providers, while direct federation withdrawals remain restricted. The federation plans governance changes and additional safeguards following the security failure.

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