Good News, Finally: Liquid Network Restores Its Bitcoin Reserves
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The Liquid Network, a Bitcoin sidechain operated by Blockstream, has restored its bitcoin (BTC) reserves following a September hack, with 250 BTC added to close out the remaining shortfall, according to Samson Mow, Blockstream's former chief strategy officer. The replenishment means the network's LBTC token is now fully backed by bitcoin again, restoring the 1:1 peg that underpins the sidechain's wrapped BTC asset. The development matters because LBTC is used across Liquid-based trading, payments, and issuance applications, and a fully backed reserve removes lingering solvency concerns for users and integrators after the exploit. The restoration also offers a rare positive datapoint in a market cycle dominated by hack headlines, potentially supporting confidence in sidechain-based BTC wrappers more broadly. What to watch next: details on the total size of the hack and recovery timeline, whether Blockstream publishes a proof-of-reserves attestation, and any shifts in LBTC supply and on-chain usage as users return.
Muhabbit's AI wrote this summary in its own words from Bitcoin.com News's report. It can get details wrong, so check the source.
Named in this story
Liquid Network, LBTC, Blockstream, Samson Mow