Liquid Network has kept LBTC redemptions paused for 35 days, with protocol support at 86% on October 11, 2026. According to Odaily, attackers who previously exploited an Elements software vulnerability transferred nearly 4,000 bitcoin, returned about 3,400, and still hold 598.5 bitcoin worth $49.69 million.

Blockstream rejected the attackers' demand for a 10% bounty and asked for the remaining bitcoin to be returned immediately. Liquid Network said an independent external security audit of Elements v23.3.4 is underway, while the Liquid Federation is updating its PAK list and placing all redemption keys in cold storage.

No date has been set for the resumption of redemptions. Some LBTC holders have moved funds through apps including Sideswap and Sideshift.ai, and one user said the transfer took weeks because of limited liquidity, with spreads and fees totaling about 5%.