Liquid Network Redemption Paused for 35 Days, Attacker Still Holds $49.69 Million in Bitcoin

The Bitcoin sidechain project Liquid Network has suspended LBTC to Bitcoin redemption operations for 35 days. On October 11, 2026, the project's support rate dropped to 86%; the attacker exploited a vulnerability in the Elements software to steal nearly 4,000 Bitcoins, of which approximately 3,400 have been returned. Currently, the wallet still holds 598.5 Bitcoins, valued at $49.69 million. Blockstream has rejected the attacker's demand for a 10% bounty and has requested the immediate return of the remaining Bitcoins. Liquid Network stated that an independent external security audit of Elements v23.3.4 is underway, and the Liquid Federation is synchronizing updates to the PAK list while placing all redemption keys in cold storage. There is no specific date for the resumption of redemption operations. Some LBTC holders have migrated funds through applications such as Sideswap and Sideshift.ai, but due to insufficient liquidity, the migration has taken weeks, with a total price difference and fees amounting to about 5%.

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