Skip to content
$BTC$76,505−2.0%$ETH$2,247−1.6%$SOL$91.50−3.0%$XRP$1.25−0.1%$TON$1.780.0%MCap$2.57T−1.4%BTC.D59.4%Fear&Greed26 FearGas0.04 gwei·1 sat/vBNews mood13% bullish
Basis Desk

New: Basis Desk Verify for Chrome & Firefox — fact-check crypto news on any page, free.Get the extension →

Security & Hacks · 1 min read

Liquid Restores Full Bitcoin Backing Following Elements Exploit

Full reserve levels fulfill a prerequisite to restart direct federation withdrawals, which remain under enhanced operational controls.

Editorial oversight: Julian Mercer, Chief Editor
Neutral
$BTC $76,505 −2.0%

At a glance Announced

What happened
Liquid restored full Bitcoin reserve backing following an exploit affecting Elements.
Why it matters
Achieving full reserve status satisfies a critical requirement needed to resume direct federation withdrawals.
Who is affected
Liquid network users and federation participants seeking direct Bitcoin withdrawals.
What's next
No next step announced.
Primary source
thedefiant.io: Liquid Restores Full Bitcoin Backing After Elements Exploit

Key points

  • Liquid has re-established full Bitcoin backing following an exploit involving Elements.
  • Restoring full reserves fulfills a condition required to restart direct federation withdrawals.
  • Direct federation withdrawals were last reported to be operating under enhanced operational controls.

The Liquid sidechain network has restored full $BTC backing following an exploit involving Elements 1. The return to full reserves satisfies a necessary operational condition for restarting direct federation withdrawals on the platform 1.

Direct federation withdrawals were last reported under enhanced operational controls following the incident 1. While full collateralization has been re-established, the enhanced operational parameters were previously put in place to manage outbound flow across the federation 1. At the time of writing, Bitcoin was trading at $76,818, down 1.5% over the prior 24 hours.

Federation Withdrawal Conditions

Meeting the reserve threshold marks a key structural step for the Liquid federation's security framework after the Elements exploit 1. According to reports on the incident, holding full underlying reserves stands as a baseline requirement before network operators can transition away from enhanced controls and resume standard direct withdrawal operations 1.

No subsequent timetable has been announced for lifting the enhanced operational controls or normalizing federation withdrawal processing 1.

Sources

  1. [1] Liquid Restores Full Bitcoin Backing After Elements Exploit — thedefiant.io, November 3, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

Community read
How do you read this story for the assets involved? One vote a day, anonymous.
Be the first to vote
Share X Telegram Bluesky Markdown

The Daily Brief, in your inbox at 07:00 ET

Five stories, the numbers that moved, what to watch. Three minutes. No hype, no advice, unsubscribe in one click.

Not financial advice. Basis Desk publishes information, not recommendations. Crypto assets are volatile and you can lose what you invest.