{"id":14780,"date":"2026-10-22T07:12:48","date_gmt":"2026-10-22T07:12:48","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14780"},"modified":"2026-10-22T07:12:48","modified_gmt":"2026-10-22T07:12:48","slug":"sideswap-reopens-bitcoin-swaps-while-liquid-reserves-stay-locked","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14780","title":{"rendered":"SideSwap reopens Bitcoin swaps while Liquid reserves stay locked"},"content":{"rendered":"

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SideSwap, a swap provider on the Liquid Network, has reopened conversions from the synthetic Bitcoin token L-BTC into Bitcoin.<\/p>\n

Direct withdrawals from the Liquid Federation, which manages the network\u2019s Bitcoin reserves, remain restricted. SideSwap\u2019s payouts can still queue during refills of its own Bitcoin wallet.<\/p>\n

In its Oct. 21 update, SideSwap said users had made about 600 peg-outs, and it had paid more than 60 BTC since reopening on Oct. 20.<\/p>\n

In Liquid’s Sept. 23 assessment, Blockstream said an Elements verification-cache flaw created approximately 4,000 unbacked L-BTC and led to Bitcoin leaving Liquid\u2019s reserve through SideSwap.<\/p>\n

What holders receive, and why they may wait<\/h2>\n

Under SideSwap\u2019s reopening terms, holders send L-BTC and receive Bitcoin at a quoted 1:1 conversion rate less the provider\u2019s standard 0.1% fee. The service is available through its app or website, and a wallet using SideSwap\u2019s service may add its own fee.<\/p>\n

For now, SideSwap says it pays users from its own Bitcoin wallet and swaps the L-BTC it receives for Bitcoin in bulk.<\/p>\n

That separates the customer\u2019s conversion from replenishment of the provider\u2019s inventory. The customer supplies L-BTC, but the Bitcoin for payment must be available in SideSwap\u2019s wallet while the Federation\u2019s own withdrawal route remains restricted.<\/p>\n

Those bulk refills are still partly manual. If a refill is pending, peg-outs wait and are paid in arrival order once the Bitcoin reaches the wallet.<\/p>\n

SideSwap says a waiting peg-out is not lost and requires no action from the user. Its Oct. 21 update gives no maximum wait, leaving holders with a reopened conversion route but no stated deadline for a queued payment.<\/p>\n

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Related Reading<\/span><\/p>\n

Crypto hacks surge 55% to $1.2B, but key theft drops by 30%<\/h3>\n<\/p>\n

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The quoted conversion is separate from L-BTC\u2019s USDT price on SideSwap\u2019s order books, which buyers and sellers set. The service rate also does not establish that Liquid\u2019s full reserve backing has been restored.<\/p>\n