Liquid Network halts Bitcoin redemptions with reserves at about 86% coverage
Photo: Crypto Briefing
Blockstream's federated sidechain keeps peg-outs frozen until a roughly 603 BTC gap is closed and security reviews are finished The Liquid Network is running again, but nobody can cash out. Peg-outs, the process of turning Liquid Bitcoin (L-BTC) back into real Bitcoin, remain suspended while the sidechain’s reserve sits about 603 BTC short, according to The Defiant. Liquid says redemptions will not return until the reserve fully backs every L-BTC in circulation and its security reviews are complete. The trouble began on September 6, 2026.
Also reported by Coincu.
Source: Crypto Briefing
