The Liquid Federation announced on November 3, 2026, that Liquid’s Bitcoin reserves had been fully restored, bringing backing for all LBTC back to 1:1. It did not say how it covered the shortfall. The federation said users running their own Liquid nodes can verify the reserves.
In a September 6 exploit, self-described white-hat hackers withdrew about 4,000 BTC from the federation wallet. They returned 3,400 BTC the next day but kept roughly 598 BTC. Blockstream CEO Adam Back said authorization keys and other defenses had been hardened and the network had undergone third-party audits.
