Liquid Network at 86% Backing as Bitcoin Redemption Freeze Drags On

That demand has apparently fallen on deaf ears, and more than a month later, the situation remains at a standstill. The attacker’s wallet still holds 598.5 $BTC, currently valued at $49.69 million, while the address continues to attract a barrage of address-poisoning attempts and peculiar messages embedded in OP_RETURN transactions.

Blockstream Faces Mounting Criticism as Liquid Users Lose Patience

Liquid users have grown increasingly frustrated with the prolonged disruption, having spent weeks waiting for LBTC-to-$BTC swaps to resume. One longtime Blockstream supporter expressed their disillusionment on X, admitting that the company’s handling of the Liquid Network incident had begun to erode their confidence in it.

“I hate to say this but I am disappointed with Blockstream’s [handling] of the Liquid Network drain. Communications have been sparse and inconsistent,” the X user Sovereign Money wrote.

The account added:

“There still is no Peg-out service available, and the Liquid network is still sitting at 86% backing. So 14% of every holder’s assets are gone. I feel for the people who went all-in on the Liquid Network and Blockstream.”

External Security Audit Underway as Liquid Federation Works to Restore Peg-Outs