SideSwap reported on Nov. 3, 2026, that the Liquid Federation’s reserve fully backed the 4,270.54 L-BTC in circulation, with 4,270.54 BTC held. The matching balances restored 1:1 backing following the Sept. 6 incident, when an Elements software flaw allegedly allowed about 4,000 unbacked L-BTC to be created. Since Oct. 20, L-BTC-to-BTC conversions have been open at a 1:1 rate less a 0.1% fee, but SideSwap funds them from its own Bitcoin wallet. Direct withdrawals from the Liquid Federation remain suspended, with no confirmed restart date. When SideSwap’s wallet runs low, requests may remain queued until the next manual refill, and the provider gives no guaranteed completion time.
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