Liquid Network (L-BTC)
LivePeg-outs paused
Federated sidechainliquid.net
Active; L-BTC peg-outs paused since the 6 Sep 2026 exploit (liquid.net notice, seen 16 Oct 2026), with about 602 BTC of federation reserves still subject to recovery (Blockstream assessment, 23 Sep 2026).
- How it works
Federated Bitcoin sidechain built on Elements. Confidential Transactions hide amounts and asset types by default. L-BTC is issued against BTC held by the federation: a peg-in needs 102 Bitcoin confirmations, and watchmen pay peg-outs in batches with a greater than two-thirds signing threshold. Blocks arrive about every minute and need signatures from at least two-thirds of block signers; Blockstream's assessment says blocks need signatures from at least 11 of the 15 functionary nodes. A set of three emergency keys can reach funds after a timelock if the network stops functioning for an extended period.
- What can be measured
L-BTC supply (peg-ins minus peg-outs minus burns) and the cumulative number and volume of peg-ins and peg-outs; the federation's bitcoin reserves from liquid.network's audit.
Collected by PriFi.info every day and charted above. Latest reading, 17 Oct 2026, 01:22 UTC: supply 4,234.76 L-BTC; 117,346 peg-ins totalling 18,387.58 BTC; 10,414 peg-outs totalling 14,142.80 BTC; 10.03 L-BTC burned. Federation reserves 3,632.23 BTC (liquid.network, 18 Oct 2026).
Public data: blockstream.info, tested. Blockstream's Esplora API is free to use without authentication, with rate limits (Liquid documentation, updated 1 Jun 2026), and states no licence for the data, which is public chain data. liquid.network's terms (updated 10 Jul 2024) cover the site and its API, state no licence for reusing its data and make no guarantee of its accuracy.
- Not measurable
Amounts and asset types inside confidential transactions, and how much L-BTC custodians hold.
- Worth knowing
Because the recovery reorganisation removed the exploit transactions from the Liquid chain, the Liquid-side supply does not include the 3,996.02 BTC paid out on Bitcoin. Blockstream's assessment does not say whether any user lost funds.
- Incidents
Exploit Rangeproof cache flaw used to create about 4,000 unbacked L-BTC and withdraw 3,996.02 BTC
Blockstream's assessment says two bugs in the Elements rangeproof verification cache (Bug A, from a 2018 commit, reported on 2 Aug 2026 and fixed on the production bridge nodes on 3 Aug 2026, and Bug B, a flaw in that fix) let a transaction in Liquid block 4,050,336 at 13:53 UTC create about 4,000 L-BTC with no bitcoin behind it. The L-BTC was pegged out through SideSwap, a federation member holding a peg-out authorisation key; Blockstream says SideSwap kept that key online although the federation charter requires it to be kept offline, and applied no size limit, velocity control or wallet-history check. Federation signers released 3,996.02 BTC on Bitcoin, confirmed at 14:28 UTC (transaction 8db751a6...), and Blockstream took the Liquid bridge nodes offline at 18:26 UTC. The attacker, who described themselves on chain as whitehats, returned 3,400 BTC on 7 Sep 2026 at 16:09 UTC (transaction a6d697a2...). Elements v23.3.4 was published on 9 Sep 2026 and block production resumed that day on a corrected chain with a replacement block 4,050,336, from which the invalid outputs and the transactions built on them were removed; user transactions resumed on 10 Sep 2026 with peg-outs still disabled. Blockstream says no key was compromised, that the payout and smaller peg-outs confirmed before the halt took the reserve from about 4,205 BTC to 197 BTC, that no inflation from either bug remains on the current chain, and that about 602 BTC remains subject to recovery efforts.
Sources: Liquid Network Security Incident Assessment ; Bitcoin transaction 8db751a6 (83 federation inputs, 3,996.01834922 BTC output, block 965,783) ; Bitcoin transaction a6d697a2 (3,400 BTC to the federation address, block 965,950)
Sources 18
- Liquid Network Security Incident Assessment
- Liquid Network homepage (notice: 'LBTC peg-out operations remain paused')
- Liquid blog (same peg-out notice; assessment cross-posted on 25 Sep 2026)
- Technical overview
- Esplora API: free public endpoints, rate limits
- Esplora HTTP API: assets (Elements/Liquid only)
- L-BTC asset statistics
- L-BTC supply (Liquid audit)
- Federation BTC reserves (Liquid audit)
- Reserve audit sync status
- Federation reserve UTXOs
- Tracked federation addresses
- Federation reserves by month
- Net pegs by month
- Recent peg-ins and peg-outs (first page; later pages at /15, /30 and so on)
- Terms of Service (cover liquid.network and its API)
- Bitcoin transaction 8db751a6 (federation payout of 3,996.02 BTC)
- Bitcoin transaction a6d697a2 (3,400 BTC returned to the federation address)