Liquid Network Reports 600 BTC Unrecovered After Security Incident

Liquid Network announced on September 18 that block production and on-chain transactions including Liquid Bitcoin (L-BTC) have resumed normally since its restart on September 10. However, pegout redemptions converting L-BTC back to Bitcoin (BTC) remain suspended. The network reported that approximately 3,400 of the roughly 4,000 BTC stolen in a security incident have returned to the consortium reserve fund, with about 600 still unrecovered.

Liquid Network stated it has completed software updates and testing, along with independent security reviews, to verify L-BTC's full 1:1 peg to Bitcoin before resuming pegout redemptions. Specific plans and timelines for the restart will be announced separately.