Hacking News
Liquid Network Restores Bitcoin Backing
The Liquid Network has fully restored full Bitcoin backing for all LBTC, the token representing Bitcoin on Liquid, two months after self-described white-hat hackers drained most of the reserves. The federation, which runs the network, has reestablished 1:1 Bitcoin backing for all LBTC through participating providers. Blockstream CEO Adam Back highlighted three hardened lines of defense: refreshed peg-out authorization keys in cold hardware wallets, disabled proof validation caches, and a bug fix for nodes. The network has also undergone multiple third-party audits.