Liquid Network peg-outs remain frozen until full reserve backing and security reviews are complete
first published 2026-10-11T15:45:36Z
Liquid Network’s peg-out operations are still suspended 35 days after an exploit in Elements software drained nearly 4,000 BTC. Attackers returned about 3,400 BTC, but still hold 598.5 BTC worth roughly $49.69 million. Blockstream and the Liquid Federation are continuing an external security audit and have not said when LBTC redemptions for BTC will resume.
AI Analysis
Peg-out redemptions remain suspended after a large BTC drain, and a substantial amount of BTC is still held by attackers. The ongoing freeze and unresolved audit create direct negative operational news for the network.
Expected Investor Sentiment: Bearish
Potential Market Impact: Significant
