Samson Mow says Liquid's 600 BTC reserve gap will be closed within days

what happened

According to Crypto Briefing, JAN3 CEO Samson Mow says the remaining 600 BTC shortfall in the Liquid Network sidechain will be fully covered in the coming days. The latest transfer, made on October 27, 2026, was a test deposit of 2.53048101 BTC into the Liquid federation wallet. After it, the wallet holds roughly 3,649 BTC against 4,249 L-BTC in circulation, which is about 85.88% coverage.

The problem began on September 6, 2026, when an attacker exploited a flaw in Elements, the software Liquid runs on, and created around 4,000 L-BTC with no backing. Reserves fell from roughly 4,205 BTC to 197 BTC. Later, after negotiations, the attackers returned 3,400 BTC, but a gap remained. Blockstream has pledged to cover it, and an external security audit was completed by October 20, 2026.

why it matters

For the market, the key point is that direct peg-outs through the federation remain paused until full 1:1 backing is restored, and only partial exits via third-party swaps are available. Filling the gap would reopen direct withdrawals, and Blockstream's decision to absorb the loss means L-BTC holders would not bear it through a haircut.

market impact

BTC and L-BTC: closing the shortfall eases risk for L-BTC holders and paves the way for direct peg-outs.

tags

instruments