Liquid Network Announces Final Stages of Recovery Following $320 Million Hack

The Liquid Network, a Bitcoin layer-2 solution created by Blockstream, has announced it is in the final stages of recovery after hackers stole 4,000 bitcoin (worth approximately $320 million at the time) from its federation wallet in September 2026. Blockstream successfully negotiated the return of most of the funds through a "white hat" operation, and LBTC:BTC swaps have been restored across platforms including Side Swap and Aqua Bitcoin. The network plans to reestablish full 1:1 bitcoin backing and reactivate federation peg-outs for authorized key holders.