# Bull Bitcoin Customers Face Uncertain Wait for BTC Withdrawals

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/23356
Published: 2026-09-23T15:43:25.000Z
Updated: 2026-09-23T15:43:25.000Z

Bull Bitcoin customers remain unable to convert Liquid Bitcoin (L-BTC) into Bitcoin (BTC) while Liquid Network’s peg-out system stays suspended after a Sept. 6 exploit.

Bull Bitcoin estimated that L-BTC-to-BTC swap and exchange services could resume within 30 days, but stressed that the timeframe was not guaranteed.

“Based on the information we have, our expectation is that Liquid swap and exchange services allowing users to convert their L-BTC to BTC could resume within 30 days. This is an educated guess, not a guarantee,” Bull Bitcoin said Sept. 22.

The exploit used a vulnerability in Elements software to create approximately 4,000 unbacked L-BTC at 9:53 a.m. ET (13:53 UTC) on Sept. 6. The Liquid Federation later released 3,996.02 BTC at 10:28 a.m. ET (14:28 UTC), with nearly all of the funds sent to the attacker’s address.

About 3,400 BTC was later returned after the attacker communicated with Blockstream through Bitcoin transactions. Roughly 598.5 BTC remains outstanding, although transaction calculations differ slightly.

Liquid resumed block production and regular network transactions, including L-BTC transfers, on Sept. 10. The network’s peg-outs remained paused as of Sept. 17.

“Since resuming on September 10, block production and network transactions, including LBTC transfers, have operated normally. Peg-out operations remain paused while work continues with Federation members and partners toward their safe restoration,” Liquid said.

A peg-out burns L-BTC and releases an equal amount of BTC from Liquid’s federation wallet to a whitelisted address. Liquid said restarting the process requires full one-to-one BTC backing, software updates, testing and independent security reviews.

Liquid has not provided a firm date for restoring peg-outs, leaving Bull Bitcoin customers waiting to convert L-BTC back into BTC.