According to Huoxing Finance, the Liquid Network’s LBTC-to-Bitcoin conversion has been suspended for 35 days. As of October 11, 2026, the project still maintains an 86% support rate. Previously, the attacker exploited a vulnerability in the Elements software to steal nearly 4,000 bitcoins and has since returned approximately 3,400, leaving 598.5 bitcoins—valued at $49.69 million—in the wallet. Blockstream has rejected the attacker’s demand for a 10% bounty and insisted on the immediate return of the remaining bitcoins. Liquid Network stated that an independent external security audit of Elements v23.3.4 is underway, the Liquid Federation is synchronously updating its PAK list, and all redemption keys have been moved to cold storage. No specific date has been set for resuming redemption operations. Some LBTC holders have migrated their funds via applications such as Sideswap and Sideshift.ai; one user reported that due to insufficient liquidity, the migration took several weeks, with combined slippage and fees totaling approximately 5%.
Liquid Network Suspends LBTC Redemption for 35 Days; Attacker Holds $49.69 Million in Bitcoin
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Summary
The Liquid Network has paused LBTC-to-Bitcoin redemptions for 35 days following a major Bitcoin upgrade. As of October 11, 2026, support remains at 86%. A hacker exploited a vulnerability in the Elements software, transferring 4,000 BTC and returning 3,400 BTC, while still holding 598.5 BTC—valued at $49.69 million. Blockstream declined a 10% bounty offer and demanded the return of the remaining BTC. An independent security audit of Elements v23.3.4 is currently underway, and the Liquid Federation is updating its PAK list and moving redemption keys to cold storage. Some LBTC holders are using Sideswap and Sideshift.ai, but low liquidity has caused delays, with fees and spreads reaching 5%. A network upgrade is in progress, though no redemption date has been announced.
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