Summary

  • Threshold Network said it has gradually resumed on-chain operations of the tBTC bridge after applying a security patch.
  • It said the freeze on about $120 million in tBTC reserves in the Aave Ethereum Core market, along with limits on new deposits and additional borrowing, will remain in place.
  • Threshold said about 4,320 BTC are being held in the bridge wallet and that it has found no signs of unauthorized transfers or irregular issuance involving the 4,185 tBTC in circulation.

Forecast Trend Report by Period

Threshold Network’s Bitcoin bridge tBTC has resumed on-chain operations after a security-related shutdown, though limits on the asset’s use on decentralized finance platform Aave remain in place.

Cointelegraph reported on Nov. 9 that Threshold had begun gradually restarting the tBTC bridge as node operators that applied a security patch rejoined the network. The restart comes nine days after the service was halted on Oct. 30 in response to a security vulnerability.

The tBTC bridge allows Bitcoin to be used on other blockchains. Independent node operators jointly approve Bitcoin transfers and process deposit and redemption requests.

Previously submitted transaction requests will be processed sequentially as node operators return. New deposits, tBTC minting and redemption functions will remain restricted until a sufficient number of nodes are fully back online. Threshold did not disclose when full service would be restored.

Threshold halted the bridge on Oct. 30 after a critical security flaw was discovered in the Linux kernel that could allow remote code execution. It said there was no evidence the vulnerability had been exploited against tBTC nodes.

Aave has frozen tBTC reserves in its Ethereum Core market since Oct. 31 to contain risks tied to the bridge suspension. About $120 million of tBTC is held in that market, and new deposits and additional borrowing against tBTC collateral remain restricted. Existing users can still withdraw assets and repay loans.

Threshold said the bridge wallet currently holds about 4,320 BTC, while about 4,185 tBTC are in circulation. No signs of unauthorized Bitcoin transfers or irregular token issuance have been found. LlamaRisk, Aave’s risk-management provider, plans to propose lifting the reserve restrictions once bridge operations are fully restored.

Suehyeon Lee