As of October 11, 2026, Blockstream's Liquid Network maintains a freeze on Bitcoin redemptions following a September 6 software bug in Elements that drained nearly 4,000 BTC worth $320 million. While white-hat actors recovered roughly 3,400 BTC, a shortfall of about 603 BTC leaves the reserve at approximately 85.8% to 86% coverage. Blockstream CEO Adam Back assured users the 1:1 peg will be restored, but redemptions remain paused pending full backing, security audits, and cold storage key management upgrades.
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