SideSwap Confirms Liquid Network’s 1:1 Bitcoin (BTC) Reserve While Customer Exits Depend on Manual Refills

The Liquid Federation announced on November 3 that Bitcoin reserves supporting the Liquid Network have been fully restored, reestablishing one-to-one backing for every circulating L-BTC.

According to figures published on the network’s public dashboard that morning, 4,270.54 L-BTC were in circulation and matched by an identical quantity of Bitcoin held by the Federation.

The alignment returns the sidechain to the parity that existed before the September 6 incident, when a flaw in the Elements software permitted the creation of roughly 4,000 unbacked L-BTC that were then redeemed for Bitcoin.

SideSwap, a non-custodial exchange and wallet operating on Liquid, confirmed the same reserve and circulation totals and noted that the shortfall had been closed through a series of visible on-chain deposits: 2.5 BTC on October 27, 50 BTC on October 28, and successive transfers of 300 BTC and 250 BTC on November 2.

Of the approximately 3,996 Bitcoin that left the Federation reserve on September 6, 3,400 Bitcoin was returned the following day; the remaining gap of about 602 Bitcoin has now been covered.

The Federation’s statement did not identify the source of the replenishing funds, and SideSwap deferred to that announcement rather than speculate.