LIQUID NETWORK RESTORES 1-TO-1 BITCOIN BACKING 📊🔒
🟢 Liquid Network (a Bitcoin side network built by Blockstream) restored full 1-to-1 backing, holding 4,271 $BTC (about $335.6M) for all 4,271 L-BTC (wrapped Bitcoin) in circulation 💰🛡️
How the 602 $BTC hole happened and got fixed:
🔹 On 6 September 2026, a code bug let an attacker print 4,000 fake L-BTC without locking real Bitcoin.
🔸 The attacker used SideSwap to trade those fake coins for 3,996 real BTC ($320M) from the vault.
🔶 The attacker returned 3,400 BTC and demanded a 10% reward for the rest, which Blockstream refused.
🔷 Board member Samson Mow (JAN3 CEO) confirmed Blockstream refilled the missing 602 BTC ($47.3M) via 50, 300, and 250 BTC deposits by 2 November.
Two important things to keep in mind ⚠️
1️⃣ Direct network withdrawals stay restricted during security upgrades.
2️⃣ Swapping L-BTC on SideSwap (0.1% fee from its wallet) can still face waiting queues.
Should crypto companies cover user losses when their software has a bug? 👇
#Bitcoin #BTC #Crypto #Blockstream
🟢 Liquid Network (a Bitcoin side network built by Blockstream) restored full 1-to-1 backing, holding 4,271 $BTC (about $335.6M) for all 4,271 L-BTC (wrapped Bitcoin) in circulation 💰🛡️
How the 602 $BTC hole happened and got fixed:
🔹 On 6 September 2026, a code bug let an attacker print 4,000 fake L-BTC without locking real Bitcoin.
🔸 The attacker used SideSwap to trade those fake coins for 3,996 real BTC ($320M) from the vault.
🔶 The attacker returned 3,400 BTC and demanded a 10% reward for the rest, which Blockstream refused.
🔷 Board member Samson Mow (JAN3 CEO) confirmed Blockstream refilled the missing 602 BTC ($47.3M) via 50, 300, and 250 BTC deposits by 2 November.
Two important things to keep in mind ⚠️
1️⃣ Direct network withdrawals stay restricted during security upgrades.
2️⃣ Swapping L-BTC on SideSwap (0.1% fee from its wallet) can still face waiting queues.
Should crypto companies cover user losses when their software has a bug? 👇
#Bitcoin #BTC #Crypto #Blockstream
