Liquid Network Recovers 3,400 BTC from Security Incident, Halts LBTC Redemption

Liquid Network has recovered approximately 3,400 BTC out of the roughly 4,000 BTC withdrawn due to a security incident. However, the peg-out redemption process, which converts LBTC back to Bitcoin, remains suspended until security recovery is completed. Liquid Network announced in its update on September 18 that block generation and some on-chain transactions resumed after September 10, but peg-out redemptions for LBTC continue to be paused. Approximately 600 BTC remains unrecovered. The network stated it will resume peg-out redemptions once LBTC has fully restored its 1:1 Bitcoin peg, following software updates, testing, and an independent security audit.