Liquid restores BTC backing as Adam Back warns developers not to trust AI-suggested fixes

On Tuesday, November 3, the Liquid Federation said it had restored full 1:1 bitcoin backing for LBTC, the token representing bitcoin on Blockstream’s Liquid sidechain, after a September exploit drained about $320 million in BTC and left a reserve shortfall. Blockstream supplied the missing coins, according to board member Samson Mow; deposits of 50 BTC on October 28, then 300 BTC and 250 BTC on Monday closed the gap, according to his tracking. The September 6 flaw in Elements software let attackers mint about 4,000 unbacked LBTC and withdraw real bitcoin. The federation has not said whether all peg-out restrictions are lifted.