Another 50 Bitcoin was sent to the Liquid Network's Federation wallet on October 28th, cutting the network's remaining shortfall to 550 Bitcoin, according to JAN3 CEO and Liquid Network Technology Board member Samson Mow.

The deposit followed a 2.5-Bitcoin test transaction on October 27th that brought the gap down to 600 Bitcoin.

Both transfers went to a publicly viewable Federation address, where blockchain data shows the 50 Bitcoin confirming at 12:11 UTC on October 28th.

The remaining Bitcoin is set to be moved to the wallet in the coming days, according to the October 27th post.

The shortfall stems from a September 6th exploit in which a flaw in Elements, Liquid's underlying software, allowed roughly 4,000 unbacked L-BTC to be redeemed for 3,996.02 Bitcoin, according to the Federation's incident assessment.

A total of 3,400 Bitcoin was returned on September 7th.

L-BTC is the token on Liquid, a Bitcoin sidechain, and is meant to be backed one-to-one by Bitcoin held by the Federation.

In his October 28th post, Mow also pushed back on reports that peg-outs would resume only after all 600 Bitcoin had been restored.

He noted that the Federation has been conducting semi-automated peg-outs to its members for the past week, so users of AQUA, SideSwap, and Bull Bitcoin have been able to convert L-BTC to Bitcoin for more than a week.

The Liquid Network confirmed in an October 27th X post that swaps between Bitcoin and L-BTC were re-enabled the previous week as part of its staged recovery, with participating providers exchanging the two at 1:1.

Those providers, including AQUA, Bull Bitcoin, and SideSwap, handled 99% of peg-out volume before the incident, according to the post.

Standard Federation peg-outs remain under enhanced operational controls while security hardening continues and an independent security audit nears completion.

The network pointed users to its Proof of Reserves at liquid.network to track progress toward restoring full 1:1 Bitcoin backing for L-BTC.

Bull Bitcoin restored Liquid and Lightning support on its BULL Wallet on October 20th, letting users send and receive Lightning payments and exchange L-BTC back to on-chain Bitcoin.

The company also resumed Liquid payments on its BULL Exchange.

AQUA reported on October 29th that peg-ins and peg-outs were processing normally through SideSwap at a 1:1 ratio of L-BTC to Bitcoin.

Swaps between Liquid and Lightning are running through Indra, AQUA's in-house swap infrastructure, at a 0.25% fee, the wallet added.

Liquid USDT cross-chain swaps are available through SideShift AI, while those routed through Changelly are still recovering.