Liquid Network Restores Full Bitcoin Backing After $320M Attack

The Liquid Network has announced the full restoration of its Bitcoin reserves. This milestone comes two months after a security breach resulted in the loss of a significant portion of the network's assets. The one-to-one parity between Bitcoin and the LBTC token has been successfully reestablished.

Blockstream CEO Adam Back confirmed that the network's assets now fully match its liabilities. The platform's dashboard currently shows zero reserve deficit. Users running their own nodes on the network have the ability to verify these reserves independently.

To prevent future incidents, the network has implemented exit authorization keys stored in cold hardware wallets. Consensus rules were reinforced to adopt a closed-failure standard. The system also underwent multiple external audits to ensure code integrity.

Adam Back warned developers about using solutions suggested by artificial intelligence. He noted that AI tools can assist in writing code but may also introduce or hide critical vulnerabilities. The recommendation is to maintain a stance of verifying everything rather than blindly trusting automated suggestions.

Liquid Network continues to modernize its governance structure. The goal is to establish clearer responsibilities and increase oversight of network operations. The federation did not provide details on how the deficit caused by the attack was covered.