Announcement from Bull Bitcoin
In a recent announcement, Bull Bitcoin, a Canadian exchange and wallet provider, has informed its customers that converting L-BTC back into BTC on their platform is currently unavailable. This disruption is a consequence of a significant hack on the Liquid Network that took place on September 6, resulting in the theft of 4,000 BTC. While a majority of the stolen currency was returned, approximately 598.50 BTC—valued at over $51 million—remains with the attackers.
Impact on L-BTC Holders
L-BTC holders may experience delays as the process to convert their tokens back to bitcoin, known as “peg-out”, remains halted. Bull Bitcoin reassured users on their X account that there is hope for resuming services within a month. However, they noted that the situation is beyond their control, stating,
“We have to wait for the Federation to resume peg-outs.”
Ongoing Challenges and Updates
Just six days prior, Bitcoin.com News highlighted the ongoing challenges facing Blockstream’s Liquid Network regarding the ability to swap L-BTC for BTC. Following the initial hack, roughly 3,400 BTC were returned after negotiations with the attackers, but their demands for the remaining funds have not been resolved as of now.
In a subsequent update from the Liquid Network’s X account on September 17, confirmation was given that normal operations, including block production and transactions, resumed on September 10, yet peg-out operations remain suspended while the Federation collaborates to restore them safely.
Precautionary Measures by Bull Bitcoin
In the meantime, Bull Bitcoin has opted to keep inbound payments via the Lightning Network inactive to safeguard users from holding L-BTC without assurance of converting it back to BTC. They have emphasized that their anticipation for the resumption of Liquid swap and exchange services is an educated estimate and not a definitive confirmation.
User Reactions
The response from users on X has been largely negative, reflecting frustration over the prolonged wait. Some users expressed concerns that such delays could tarnish the reputation of the Liquid Network. Comments varied from dissatisfaction with the current state of affairs to outright pessimism about the future of Liquid, with some users claiming,
“Liquid is finished. Forever.”
Looking Ahead
As these developments unfold, stakeholders in the cryptocurrency community will be closely monitoring the situation as the deadline for potential resumption approaches, and the pressure mounts on both the Federation and Bull Bitcoin to devise a resolution.
