Liquid Network Restores Full Bitcoin Backing After Final 250 Bitcoin Deposit

Liquid Network restored one-to-one backing for Liquid Bitcoin (L-BTC) after a final 250 Bitcoin (BTC) arrived in its reserve wallet, closing a gap that had left reserves below circulating token levels.

Samson Mow, JAN3 founder and CEO and a member of the Liquid Network Alliance Technical Committee, said the reserve wallet received the final deposit. Blockstream had committed to cover the shortfall, and transfers into the wallet began in late October.

The reserve gap followed a September vulnerability in the rangeproof verification cache in Elements, the software underlying Liquid. The flaw enabled attackers to create L-BTC without matching Bitcoin reserves.

Peg-outs are direct conversions of L-BTC back into BTC. Restoring reserves meets a stated condition for restarting them, but does not show that service has resumed. Liquid's recovery process also includes remaining security and operational requirements, as detailed in earlier coverage of suspended redemptions.