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BitcoinTokenPostKorean, translatedFiled 4 days ago

1:1 recovered Liquid Bitcoin (LBTC)... Federation peg-out restrictions

Original headline1대1 복구된 리퀴드 비트코인(LBTC)…페더레이션 페그아웃 제한

Open the sourceReported by TokenPost, tokenpost.kr, 3 November 2026, by 강이안
Impact 55 of 100, routine

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The Liquid Federation has restored 1:1 BTC backing for Liquid Bitcoin (LBTC) following a September security incident, though federation-operated peg-outs remain restricted. The federation said in an official notice on the 3rd that reserve status can be verified via Liquid node proof-of-reserves functionality or a public dashboard, after Blockstream CEO Adam Back committed to restoring Liquid's 1:1 collateralization and redemption structure. BTC-to-LBTC swaps resumed weeks ago through participating providers, and SideSwap has reopened its own deposits and withdrawals, but federation-native peg-outs are still limited. The restoration matters because it addresses the collateral gap that undermined confidence in LBTC, one of Bitcoin's longest-running sidechain assets. What to watch next is when the federation fully lifts peg-out restrictions and whether independent reserve attestations confirm the 1:1 backing at scale.

Muhabbit's AI wrote this summary in its own words from TokenPost's report and translated it from Korean. It can get details wrong, so check the source.

Named in this story

Liquid Federation, Liquid Bitcoin, Adam Back, Blockstream, SideSwap