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Bitcoin sidechain Liquid Network has begun a phased recovery after a security incident and will first resume swap services between BTC and LBTC, according to an official blog post.
Users can convert LBTC into BTC through supported providers, but direct withdrawals through the federation remain restricted. Liquid Network said it has deployed an update to its BTC reserve management software and plans to resume direct withdrawals after fully restoring one-to-one BTC backing and meeting remaining security and operational requirements. Liquid Network had temporarily suspended operations in September following a security incident involving about 4,000 BTC.