Threshold Network said Oct. 31 that tBTC remains fully backed, citing 4,320 BTC in bridge wallets against roughly 4,185 tBTC in circulation, while keeping new minting and redemptions paused.
In its security update, Threshold said “no funds have been lost” and it had seen no unauthorized minting. It gave no restart time or details of the underlying security issue, saying bridge functionality would resume once “a full remediation is in place.”
Six of the 44 active wallets listed in Threshold’s explorer held a combined 4,320.33 BTC, according to The Defiant’s calculation using Bitcoin records on mempool.space. Etherscan showed an Ethereum token supply of 4,185.16 tBTC during reporting.
The tBTC bridge lets Bitcoin holders bring their BTC into DeFi, with deposited Bitcoin secured by groups of Threshold network operators. Threshold said tBTC continues to transfer normally on Ethereum and Layer 2 networks, but pending deposits and redemptions will complete after bridge operations resume.
https://x.com/i/status/2116588948881375583
Threshold warned users not to send BTC to previously generated deposit addresses or repeat pending transactions. Its initial pause notice on Oct. 30 also told depositors to retain receipts and transaction hashes and avoid initiating operations through alternative interfaces.
Lending Restrictions Remain
Aave’s Ethereum Core tBTC reserve, frozen earlier on Oct. 31, remained frozen, with about $136.5 million supplied.
Aave risk service provider LlamaRisk said the freeze blocks new tBTC deposits and additional borrowing against the token. Repayments, withdrawals and liquidations continue, and the freeze itself does not change existing positions’ health factors or make them liquidatable.
Gauntlet said it added a tBTC-backed market used by its Ethereum Morpho USDC Core vault to its optimizer’s emergency exclusion list. It withdrew about 65,000 USDC of available liquidity, leaving roughly 640,000 USDC supplied. The vault manager warned that the redemption pause may affect tBTC liquidity and liquidation exits.
Threshold promised another update within 24 hours, or sooner if anything changes.