The Liquid Network continues to face challenges as its peg-out functionality remains inactive, more than a week after a significant hack that resulted in the theft of nearly 4,000 BTC. While the hackers returned 3,400 BTC, they still hold onto 598.50 BTC, valued at over $45 million.
Blockstream, the maintainer of the Liquid Network, has stated that the 1:1 peg between L-BTC and BTC will be restored. However, users are cautioned against selling their L-BTC at discounted rates, as peg-outs are still not operational.
Despite the return of a substantial portion of the stolen funds, the Liquid Network's reserves show a discrepancy, with 4,234.76 L-BTC in circulation but only 3,632.23 BTC held. This situation has raised concerns about the reliability of BTC-backed projects.
The ongoing saga has not only affected Liquid but has also drawn attention to other BTC-backed platforms like Symbiosis and Nomic, which have faced similar exploits. The cumulative effect of these incidents is fostering skepticism about the security of layer two solutions and bridges.
As the Liquid Network works to resolve these issues, the community is left in a state of uncertainty, highlighting the fragile nature of trust in the cryptocurrency ecosystem.
