Liquid Network Provides Security Update: On-chain Transfers Normal, Peg-outs Remain Paused

Liquid Network reported that block production and on-chain transfers, including LBTC, have been operating normally since September 10. However, peg-out redemption operations remain suspended while the network works with alliance members on recovery plans. Of the approximately 4,000 BTC withdrawn during the security incident, about 3,400 have been returned to the reserve, with 600 still missing. Peg-outs will only resume after full 1:1 BTC peg verification, software updates, and independent security audits are completed.