Liquid Network’s Peg-Out Operations Remain Suspended Amid Security Audit
- As of Oct. 11, 2026, Liquid Network’s peg-out operations have been frozen for over a month following an exploit that drained nearly 4,000 BTC.
- Attackers returned approximately 3,400 BTC but still hold onto 598.5 BTC, valued at $49.69 million.
- Blockstream faces criticism as an external security audit is ongoing with no set date for resuming peg-outs.
- Liquid Network remains at only 86% backing, meaning 14% of holders’ assets are inaccessible.
- Some users have resorted to alternative methods to move their funds out of the network amid the suspension.
The Liquid Network has faced significant challenges following a major exploit that led to the suspension of peg-out operations and affected user confidence in the protocol’s security measures.
With attackers retaining a substantial amount of Bitcoin and no clear timeline for restoring services, users continue to seek alternative solutions to access their assets. (Source)
