Liquid restores full bitcoin backing after elements exploit
Liquid said its bitcoin-backed token is now fully collateralised, meeting the reserve threshold needed to resume direct federation withdrawals that were paused after the exploit.
Key takeaways
- 1Liquid's bitcoin-backed token is now fully collateralised after the Elements exploit
- 2Direct federation withdrawals can resume now that reserve conditions are met
Liquid announced on Friday that its bitcoin-backed token has regained full backing after the recent Elements exploit, according to a statement from the exchange.
The firm said its reserves now satisfy the condition required to restart direct federation withdrawals, which had been operating under enhanced controls since the breach.
Liquid is a Japanese cryptocurrency exchange that issues a token fully backed by bitcoin, allowing users to move on‑chain bitcoin via the federation system. The token has been a key bridge for traders seeking bitcoin exposure without holding the native asset directly.
The restoration of full backing should reassure holders and may prompt a return of normal withdrawal flows, reducing reliance on custodial alternatives. Traders will watch for any further updates from Liquid and for regulatory comments on the incident.
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