Liquid Network redemptions frozen on day 35 as 602 BTC shortfall persists
Thirty-five days ago, an exploit in Liquid Network’s Elements software removed nearly 4,000 BTC from the protocol, and bitcoin redemptions remain suspended as of October 11, 2026. Although 3,400 BTC have since been recovered, a shortfall of approximately 602.53 BTC means reserves cover only 85.8% of outstanding L-BTC tokens.
Transfers resumed on September 10, 2026, but the process of redeeming L-BTC for real bitcoins remains frozen pending an independent external security audit of Elements v23.3.4. The audit must be completed before redemptions can reopen.
The situation leaves L-BTC holders unable to convert to on-chain bitcoin, and the token is effectively undercollateralized until the shortfall is resolved and redeployment of the audited software is approved.
FSB warns G20 about stablecoin risks and AI cybersecurity threats
The Financial Stability Board has highlighted cross-border risks related to stablecoins and AI-related cybersecurity threats in a report to G20 policymakers, urging stricter regulatory measures in both areas.
The FSB noted that stablecoins operating across borders pose systemic financial stability concerns, while AI-driven threats are increasing vulnerabilities across the financial system. The watchdog urged G20 members to coordinate safeguards ahead of the summit.
#G20 #ciberseguridad #BTC #AI #FSB $BTC
Thirty-five days ago, an exploit in Liquid Network’s Elements software removed nearly 4,000 BTC from the protocol, and bitcoin redemptions remain suspended as of October 11, 2026. Although 3,400 BTC have since been recovered, a shortfall of approximately 602.53 BTC means reserves cover only 85.8% of outstanding L-BTC tokens.
Transfers resumed on September 10, 2026, but the process of redeeming L-BTC for real bitcoins remains frozen pending an independent external security audit of Elements v23.3.4. The audit must be completed before redemptions can reopen.
The situation leaves L-BTC holders unable to convert to on-chain bitcoin, and the token is effectively undercollateralized until the shortfall is resolved and redeployment of the audited software is approved.
FSB warns G20 about stablecoin risks and AI cybersecurity threats
The Financial Stability Board has highlighted cross-border risks related to stablecoins and AI-related cybersecurity threats in a report to G20 policymakers, urging stricter regulatory measures in both areas.
The FSB noted that stablecoins operating across borders pose systemic financial stability concerns, while AI-driven threats are increasing vulnerabilities across the financial system. The watchdog urged G20 members to coordinate safeguards ahead of the summit.
#G20 #ciberseguridad #BTC #AI #FSB $BTC