Liquid Network redemption frozen for 35 days, the attacker still holds BTC worth 49.69 million USD

According to Bitcoin.com, the LBTC exchange operation for the Bitcoin sidechain project Liquid Network has been suspended for 35 days. As of October 11, 2026, the project still maintains an 86% support rate; attackers previously exploited a vulnerability in the Elements software to steal nearly 4,000 bitcoins, of which approximately 3,400 have been returned, while the wallet still holds 598.5 bitcoins, valued at 49.69 million dollars.

Blockstream rejected the attackers' request for a 10% bounty and demanded 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, placing all redemption keys in cold storage.

There is currently no specific date for the resumption of redemption operations. Some LBTC holders are migrating funds through applications like Sideswap and Sideshift.ai, with one user stating that due to insufficient liquidity, the migration took several weeks, with a total spread and fees of about 5%.