{"id":78313,"date":"2026-09-17T20:49:49","date_gmt":"2026-09-17T20:49:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/l-btc-peg-out-still-shut-down-as-blockstream-refuses-hacker-demand-bitcoin-news\/"},"modified":"2026-09-17T20:49:49","modified_gmt":"2026-09-17T20:49:49","slug":"l-btc-peg-out-still-shut-down-as-blockstream-refuses-hacker-demand-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/l-btc-peg-out-still-shut-down-as-blockstream-refuses-hacker-demand-bitcoin-news\/","title":{"rendered":"L-BTC Peg-Out Still Shut Down as Blockstream Refuses Hacker Demand \u2013 Bitcoin News"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Liquid\u2019s hackers gave back 3,400 BTC, but they\u2019re still sitting on 598.50 BTC worth over $45 million.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Blockstream says L-BTC\u2019s 1:1 peg is covered, but 11 days later, holders still can\u2019t use peg-outs.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Liquid, Symbiosis and Nomic have now faced 3 exploits, putting BTC-backed projects under the microscope.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/security\/we-are-whitehats-nearly-4000-btc-drained-from-blockstreams-liquid-peg\/\">Following the Sept. 6 exploit<\/a>, around 85% of the drained bitcoin has been returned, but the remainder is still held by the protocol\u2019s attackers. Blockstream, Liquid Network\u2019s maintainer, has refused to pay for the remaining coins and wants the 598.50 BTC returned. The Liquid Network\u2019s L-BTC reserves still have a hole, as the protocol shows 4,234.76 L-BTC in circulation, but there\u2019s only <a href=\"https:\/\/liquid.network\" target=\"_blank\" rel=\"noopener noreferrer\">3,632.23 BTC held<\/a>.<\/p>\n<h2>Liquid\u2019s Peg-Outs Remain Frozen as 598.50 BTC Stays With Hackers<\/h2>\n<p>While the Liquid Network has resumed, L-BTC peg-outs are still shut down, and <a href=\"https:\/\/x.com\/side_swap\/status\/2098287616433021406?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">Sideswap disclosed<\/a> that \u201cL-BTC cannot yet be redeemed for bitcoin.\u201d Sideswap added that \u201cBlockstream has said the peg will be covered 1:1 and peg-out returns in a later step.\u201d Blockstream founder Adam Back <a href=\"https:\/\/x.com\/adam3us\/status\/2098004282133864846?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">posted on X<\/a> and insisted that the 1:1 L-BTC to BTC peg will be covered, and he told holders not to dump L-BTC over-the-counter (OTC) at a discount.<\/p>\n<p>There has been no official \u201cpeg-out is live\u201d post since then. The hackers continue to see a large slew of OP_RETURN messages onchain, including encrypted messages that cannot be seen unless you have the private key. The wallet has also been hit with poisoning attacks, where scammers generate a fraudulent wallet address that visually mirrors the first and last characters of a legitimate address held by the owner.<\/p>\n<p>The entity or attackers that created the poison wallets hope the owner inadvertently copies and pastes the spoofed address from their recent transaction ledger the next time they transfer funds, which permanently diverts the assets to them. In addition to alleged poisoning attacks flagged by blockchain explorers like mempool.space, there\u2019s also a wide range of scammy messages sent to the <a href=\"https:\/\/mempool.space\/address\/bc1ql4mfu6aundtkksxklfajs2h3t9nzcd6gyqjlte\" target=\"_blank\" rel=\"noopener noreferrer\">Liquid Network hacker\u2019s wallet<\/a>.<\/p>\n<h2>BTC-Backed Projects Face a Growing Trust Problem<\/h2>\n<p>What happens next is anyone\u2019s guess. Moreover, the Liquid Network hack was also followed by exploits against <a href=\"https:\/\/news.bitcoin.com\/security\/another-bitcoin-bridge-broke-and-this-time-billions-were-minted\/\">Symbiosis\u2019s bitcoin bridge<\/a> and an attack <a href=\"https:\/\/news.bitcoin.com\/security\/bitcoin-fund-lost-36-of-its-backing-nobody-noticed-for-74-days\/\">against Nomic\u2019s nBTC<\/a>. All three put a bad taste in people\u2019s mouths in regard to BTC-backed token projects, bridges, and layer two (L2) platforms. Lightning Network capacity dipped from 3,850 BTC at the end of August to the current 3,720 BTC.<\/p>\n<p>The Liquid hacker saga is still not over, but it exposes an uncomfortable truth. BTC-backed token protocols wholeheartedly rely on fragile human trust and slow governance. <a href=\"https:\/\/news.bitcoin.com\/crypto-news\/return-the-bitcoin-blockstream-draws-line-after-4000-btc-hack\/\">Blockstream\u2019s refusal to concede<\/a> puts L-BTC holders in a state of paralysis until something is worked out. If attacks, discovered exploits, and AI-assisted contract drains like these continue, BTC-backed projects and L2s will start looking less like innovation and more like a hostage negotiation.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/crypto-news\/l-btc-peg-out-still-shut-down-as-blockstream-refuses-hacker-demand\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Liquid\u2019s hackers gave back 3,400 BTC, but they\u2019re still sitting on 598.50 BTC worth over $45 million. Blockstream says L-BTC\u2019s 1:1 peg is covered, but 11 days later, holders still can\u2019t use peg-outs. Liquid, Symbiosis and Nomic have now faced 3 exploits, putting BTC-backed projects under [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":78314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78313"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78313"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78314"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}