Liquid Federation Restores Full 1:1 Bitcoin Backing and Resumes Peg Transfers

Liquid Network has fully restored its 1:1 Bitcoin reserve backing for Liquid Bitcoin (L-BTC/LBTC) and re-enabled 1:1 peg transfers via participating swap providers. The deficit began on September 6, 2026, when an exploit in the Elements software rangeproof verification cache drained approximately 4,000 BTC. While negotiations recovered roughly 3,400 BTC, Blockstream covered the remaining 600 BTC deficit. On November 2, Blockstream transferred an initial 300 BTC, bringing reserves to 4,018.95 BTC against 4,268.95 circulating tokens (94.14% backing), before sending a final 250 BTC deposit to eliminate the shortfall and allow peg transfers to resume.