Liquid Network halts Bitcoin redemptions with reserves at about 86% coverage
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Liquid Network halted Bitcoin redemptions after a reserve gap appeared on the sidechain. One report said coverage was about 86%, while another said an exploit left roughly 602 BTC outstanding after most withdrawn reserves were returned.
Key claims & sources
What it means
Before this, redemptions were part of the normal Liquid setup; now that process has been stopped, while the network still has a stated reserve figure in the background. The practical difference is that the sidechain is no longer functioning with full reserve backing at the moment described, even though the underlying model remains the same.
What remains open is the full shape of the exploit and the status of any remaining unbacked Liquid Bitcoin beyond the numbers already given. A later update showing whether the outstanding BTC was resolved, or whether redemptions stayed halted, would settle the missing pieces.
Market reaction i
The move was larger before the first headline than after. That is an observation, not an explanation: the market also moves on things nobody publishes.
Coverage timeline
Every piece in order, with the time its news medium declares — if it is not believable we use ours and say so — and what it added to what was already known at that point. Arriving first is not the same as adding something.
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