Update from the Federation: BTC<>LBTC swaps were re-enabled last week as part of Liquid’s staged recovery. Users can once again swap between BTC on Bitcoin and LBTC on Liquid at 1:1 through participating providers, including @AquaBitcoin, @BULLBITCOIN_ and @side_swap. These providers collectively accounted for 99% of peg-out volume prior to the incident. Normal Federation peg-out operations remain subject to enhanced operational controls while security hardening continues and the independent security audit nears completion. The community can track progress toward restoring full 1:1 BTC backing for LBTC through Liquid’s auditable Proof of Reserves at

Blockstream is making headlines in Lugano, from our new office to quantum security. Blockstream Consulting Services gives Swiss banks and asset managers direct access to our experts. Check out coverage from @CdT_Online, @finews_ch and @BitcoinMagazine featuring @adam3us. 🇨🇭

Day two at @LuganoPlanB: @n1ckler of @blksresearch on the race to replace Bitcoin's signatures, Jade Plus from @BlockstreamJade at the booth, NFC cards paying out in @Liquid_BTC, and self-custody workshops at Asilo Ciani. That's a wrap. Thank you, Lugano. 🇨🇭

So, what actually happened with the Liquid hack? 🤔 I asked @Excellion (Jan3, and a board member on the Liquid board) for the TLDR on The Starting Block in Lugano 👇 "A white hat, more grey hat hacker hacked the Federation wallet, took a number of coins out, returned some and withheld about 600 BTC." - The negotiation played out in public, on OP_RETURN - Peg-outs are back and he says @Liquid_BTC is running normally - His take on the cause: "It's the normal of AI attacks. It hit Bitcoin first, then it hit Lightning, then it hit Liquid." Full answer 👇

We doubled the Indra swap limit to 500K Sats. 🚀 Keep in mind that since Indra remains in open beta you might still experience occasional routing failures. If your payment fails please submit a support ticket so we can investigate the issue. We appreciate your feedback. 🙏

UPDATE: @Liquid_BTC peg operations are resuming. Indra swap fees are reverting back to 0.25% and rate limits are being relaxed. @side_swap functionality within AQUA is also back to normal, so you can now peg out at a 1:1 L-BTC to BTC ratio. Thanks for your patience! 🐬🌊

Great to see the hack is being recovered from! Way to go @Liquid_BTC @blockstream @adam3us ! We at @nym run a Liquid functionary and are proud supporters of the use of privacy tech in its sidechain of Bitcoin.

Peg operations are resuming for @Liquid_BTC. The external security audit is complete and looks good. Additional hardening measures are also done. Liquid users are now able to peg-out via @side_swap and @AquaBitcoin. The ~600 BTC shortfall will be added to the Federation wallet in the coming days. Everything is almost back to normal! 🙏🏻🌊

LIQUID NETWORK BEGINS RESTORING BITCOIN PEG OPERATIONS FOLLOWING SECURITY INCIDENT Samson Mow reports that the Federation will add the 600 BTC shortfall to the Federation wallet in the coming days. The @Liquid_BTC Federation says it has completed an independent security audit and implemented additional security measures as the network enters the final stages of recovery. Users can now convert L-BTC back to BTC through supported swap providers, including @side_swap, without protocol-imposed volume limits. Direct Federation peg-outs remain restricted until full 1:1 bitcoin backing is restored and final security requirements are met. The Federation says updated software for managing bitcoin reserves has been deployed, with safeguards in place to prevent unauthorized withdrawals.

Liquid Network Restoration Update With key technical milestones completed and network operations stable, user swap functionality is now restored with semi-automated swaps for Federation members. Normal peg and balance validation will be reinstated soon. The Liquid Network’s members appreciate the broader Bitcoin community’s support and advocacy as we work to not only provide the restoration, but also harden the network’s security structure.

Just an update on @Liquid_BTC. The work to restore peg operations is still underway. There are two tracks running in parallel: an external security audit and @Blockstream internal coordination on exactly how to fund the 600 BTC shortfall. It’s not a question of if it will be filled, but when. This is taking longer than expected and I’m hopeful it will be finalized soon so everything can go back to normal. @AquaBitcoin continues to support swaps via Indra for payments, which we are provisioning from our own liquidity, because I am 100% sure the 1:1 peg will be restored. We will also be increasing Indra limits to 250k sats per swap as well. 🌊

LIQUID NETWORK UPDATE: ECOSYSTEM ACTIVITY Status as of September 28, 2026, 05:48 UTC Security Audit and PAK update An independent external security audit of Elements v23.3.4 is now underway, providing an additional layer of validation as we work toward the safe restoration of peg-out operations. In parallel, the Liquid Federation is coordinating an update to the PAK list, including the replacement of existing entries and ensuring all peg out keys are properly secured in cold storage. These efforts are important steps toward resuming secure peg-out operations. We expect to share further updates on the path to resumption shortly.

We have published the technical security assessment of the September 6 Liquid incident, which details the root cause and mechanics of the exploit, an incident timeline, and the engineering and security changes being implemented in response.

Update: BTSE has resumed USDT deposits and withdrawals on the Liquid Network. We believe the recent security incident and underlying vulnerabilities have been largely resolved. Blockstream identified and patched the underlying Elements software bug, and the network has been stable since. Normal services for USDT on Liquid have been restored. @Liquid_BTC @Blockstream

LIQUID NETWORK UPDATE: ECOSYSTEM ACTIVITY Status as of September 17, 2026, 21:05 UTC Network and Ecosystem Status Since resuming on September 10, block production and network transactions, including LBTC transfers, have operated normally. Peg-out operations remain paused while work continues with Federation members and partners toward their safe restoration. Markets and services across the ecosystem are back online. @mifielfirma has resumed the issuance and transactions of its digital promissory notes, with batches confirming normally. At the exchange level, @BTSE_Official reports that its platform has re-enabled USDT-Liquid transfers and the asset is unaffected by the incident. @AquaBitcoin reports that Liquid asset transfers and peg-ins are available. Its new swap feature, Indra, is also live, enabling swaps between LBTC and Lightning BTC, although liquidity remains limited. Other wallets are restoring core functionality as well. @BULLBITCOIN_ and the @Blockstream App report that Liquid asset transfers are available, although LBTC<>BTC and LBTC<>Lightning swap routes on those services remain unavailable until peg-outs are restored. Meanwhile, other non-LBTC swap services are returning, with @sideshiftai re-enabling cross-chain swaps for $USDT and $DEPIX on Liquid. Please note service availability varies by provider, and users should confirm deposit, withdrawal and swap availability through each provider’s official channels. BTC Recovery and Peg-Outs As previously reported, 3,400 BTC of the ~4,000 BTC withdrawn on September 6 has been returned to the Federation reserve. Approximately 600 BTC remains unreturned, and efforts to pursue its recovery continue. We understand that the central question for LBTC holders is when peg-outs will resume. While we are not yet able to provide a firm date, peg-outs will resume only after full 1:1 BTC backing for LBTC has been confirmed and all required software updates, testing and independent security reviews have been completed. The Liquid Federation members and Blockstream will share the plan and timing for resuming peg-outs as soon as they are finalized. Technical Post-Mortem The root cause and exploit path have been identified, and the immediate fix was released in Elements v23.3.4. A comprehensive technical report detailing the incident will be released as soon as it is available. Thank You The Liquid Federation and Blockstream sincerely thank Federation member companies, ecosystem operators, developers, security researchers, and users for their continued work, patience and support throughout the recovery process.

Liquid update for BULL Wallet users The Liquid Network has been resumed, producing blocks and processing transactions again. However, Swaps from L-BTC to BTC and L-BTC to LN remain unavailable until the 1:1 peg is fully restored and peg-out operations are allowed again. BULL’s default receiving wallet, aka Secure Bitcoin Wallet, which uses the Bitcoin network for transactions, is unaffected by this incident. BULL’s instant payments wallets use the Liquid Network. While it is now possible for users to receive payments via Liquid, we strongly discourage them from doing so. The BULL wallet automatically prevents users from accumulating more than 1,000,000 sats in their wallet via its autoswap feature, which is enabled by default. While we wait for the Liquid Network peg to return to its full 1:1 reserve, this feature is not functional. What’s next We are confident the 1:1 peg will be restored and that no BULL Wallet user will lose funds as a result of this incident. Once full backing and peg operations are restored, you will be able to convert your L-BTC to BTC or to LN as before. If full backing cannot be restored, we will advocate on behalf of our users for a recovery plan that lets every affected user recover funds proportional to the peg ratio. BULL’s primary directive is, and always has been, to make Bitcoin a useful, private and censorship resistant means of exchange. Only then can our Mission to Destroy Fiat be realizable. BULL first integrated Lightning in its exchange in 2018. Since then, we have kept up with all new developments in the space, examined all available alternatives and tradeoffs in depth. We have presented on this topic at technical conferences, and we plan on soon releasing more insights into our approach. We thank our amazing users for their patience and support. Despite the difficult cybersecurity incidents of the past few months, we remain dedicated to building infrastructure to make Bitcoin a scalable and usable form of money.

The Liquid-to-Lightning swap limit in AQUA Wallet has been increased from 70k Sats to 100k Sats per transaction. ⚡ This update allows you to send larger Lightning payments while Indra remains in open beta. We will continue monitoring liquidity as we expand swap capacity further. 🫡