Liquid Bitcoin's collateral crisis was quickly resolved, restoring confidence in the stability of the system and preventing potential cascading failures across the network. The swift action taken by the team ensured that the issue was contained and did not lead to broader financial instability.

GateUser-e87b21ee · 2026-02-05T02:17:56+00:00

Liquid Bitcoin (LBTC) recently experienced display anomalies due to collateral issues, but the problem was quickly resolved, ensuring a 1:1 peg with Bitcoin and the safety of user funds. The incident was caused by a display error in the old version of node software; the actual collateral was unaffected, and multiple independent monitors have confirmed its integrity. This demonstrates the Liquid Network's professional handling capabilities and operational transparency.

GateUser-e87b21ee

2026-02-05 02:17:56

Abstract generation in progress

Liquid Bitcoin (LBTC) recently experienced a temporary collateral display anomaly, but this technical issue was quickly resolved. According to NS3.AI, Blockstream CEO Adam Beck confirmed that the issue has been resolved, and the 1:1 peg between LBTC and Bitcoin remains unchanged, with user funds unaffected. This incident reminds us that even mainstream blockchain projects need to continuously improve system operations.

Temporary Disruption Caused by Old Node Software

The root cause of this issue was incomplete visibility of federated wallets, combined with some nodes still running outdated code. Due to old addresses being mistakenly included in the total, the monitoring dashboard once showed LBTC’s collateral ratio at only 82.4%, far below the expected 100%. However, this was only a display issue; the actual collateral status was not compromised.

Independent Verification Confirms Everything Is Fine

It is worth noting that Blockstream promptly investigated and confirmed the true situation. Multiple independent monitoring dashboards verified that the Bitcoin reserves maintained by Liquid Network are fully sufficient to cover all issued LBTC. Adam Beck’s statement indicates that the collateral mechanism of Liquid Bitcoin remains sound, and the quick response demonstrates the professionalism of the core team. The transparency and efficiency in handling this incident further affirm Liquid Network’s position as a reliable Bitcoin scaling solution.

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