Liquid Bitcoin Redemptions Frozen Amid 85.8% Reserve Coverage
Written with artificial intelligence.
Liquid's Bitcoin peg-outs are currently halted due to a reserve gap of approximately 603 BTC. The company states that redemptions will only resume once they achieve full backing and complete necessary security reviews.
Current Status of Liquid Bitcoin Redemptions
Liquid is facing a significant challenge as redemptions for its Bitcoin (BTC) remain frozen. The platform currently has an 85.8% reserve coverage, leaving a gap of about 603 BTC. This shortfall means that users are unable to withdraw their Bitcoin until the situation is rectified.
Requirements for Resuming Redemptions
Liquid has indicated that peg-outs, or Bitcoin withdrawals, will require full backing to ensure that all redemptions can be honored. Additionally, the company must complete thorough security reviews before these processes can restart.
As it stands, users should stay updated on Liquid's announcements regarding the status of their Bitcoin redemptions and any forthcoming measures to address the reserve gap.