Crypto Briefing • October 11th 2026, 4:14 PM
Liquid Network Halts Bitcoin Redemptions Due to Software Bug
Key Summary
The Liquid Network, a Bitcoin sidechain, has halted Bitcoin redemptions due to a software bug that drained the reserve, leaving it with about 86% coverage. The bug was discovered on September 6, 2026, and has prevented peg-outs from returning until the reserve is fully backed and security reviews are complete.
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The halted redemptions highlight the critical need for robust security and full reserve backing in maintaining trust in sidechain models.