Liquid Network has restored full backing for its LBTC tokens after a $320 million exploit on its sidechain drained its reserves. The Liquid Federation confirmed on November 3 that reserves again match the amount of LBTC in circulation, with approximately 4,270 BTC providing a 1:1 backing ratio. The recovery followed several transfers, including 50 BTC on October 28 and 550 BTC on November 2, followed by a final deposit of 250 BTC. The September 6 attack exploited a vulnerability in the Elements software, allowing the creation of roughly 4,000 unbacked LBTC and the withdrawal of 3,400 BTC before the attacker returned part of the funds. BTC and LBTC swaps have resumed, but direct withdrawals remain subject to enhanced controls, while details about replacement funding and governance reforms are still pending.
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