Liquid peg-outs remain paused after nearly $320 million withdrawal; 598.5 BTC retained

  • Liquid peg-outs remain paused after an attacker drained roughly 4,000 BTC.
  • Bull Bitcoin warned customers that reclaiming BTC could take up to 30 days.
  • Liquid restarted block production September 10, but L-BTC redemptions remain unavailable.

Liquid Network peg-outs remain suspended more than two weeks after an attacker extracted roughly 4,000 BTC, valued near $320 million, from the federated Bitcoin sidechain. Liquid resumed block production on September 10, allowing transfers within the network, but L-BTC holders still cannot redeem their assets for BTC on Bitcoin's main chain. Bull Bitcoin has told some customers that reclaiming BTC could take up to 30 days, while stressing that the estimate depends on Blockstream restoring peg-outs and is not a guaranteed settlement date. Reporting put L-BTC in circulation at 4,234.76 against 3,632.23 BTC in reserves, leaving a shortfall broadly matching the roughly 598 BTC retained by the attacker after about 3,400 BTC was returned. Blockstream co-founder Adam Back said the peg would be covered 1:1, but peg-outs had not reopened as of September 23, 2026. Bitcoin traded at $84,429, down 2.2% on the day, leaving holders awaiting redemption exposed to market movements without a normal route to move, sell or spend BTC on the main chain.

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