Liquid restores full bitcoin backing for LBTC two months after $320m exploit
The Liquid Federation says its LBTC token is again backed one-to-one by bitcoin, almost two months after a 6 September software flaw let an attacker mint about 4,000 unbacked LBTC and redeem them for real BTC. Blockstream's incident report showed reserves falling from roughly 4,205 BTC to 197; the attacker sent back 3,400 BTC a day later, and a final 250 BTC transfer has now closed the remaining gap of about 600 BTC. The federation has not disclosed who supplied the shortfall, and direct withdrawals remain under tighter operational controls pending governance changes.