# Liquid Network Recovers BTC-LBTC Swaps

> Liquid Network resumes BTC-LBTC swaps after September exploit.
- Title: Liquid Network Recovers BTC-LBTC Swaps · TokenPost | Shortify
- Summary: Liquid Network resumes BTC-LBTC swaps after September exploit. Liquid Network completes software upgrade to restore BTC-LBTC swaps following September…
- Keywords: liquid network, btc, lbtc, swap providers, federation nodes, bitcoin reserves, phased recovery, crypto, finance, Liquid, Network, Recovers
- Source: TokenPost — https://tokenpost.com/news/technology/36034
- Published: 2026-10-20T22:20:28+00:00
- Read time: 1 min
- Topics: liquid network, btc, lbtc, swap providers, federation nodes, bitcoin reserves, phased recovery, crypto, finance
## Software Upgrade Complete
Liquid Network has completed a software upgrade for federation nodes managing Bitcoin reserves and is coordinating with swap providers to resume BTC and LBTC conversions.
## Phased Swap Recovery
The service will be semi-automated with no protocol-level volume cap, allowing most users to exchange LBTC back into Bitcoin through participating providers.
## Reserve Rebuild Phase
Direct peg-outs remain restricted while Liquid rebuilds Bitcoin reserves to a 1:1 ratio before resuming normal peg-outs for authorized PAK key holders.
## Key takeaway

Liquid Network completes software upgrade to restore BTC-LBTC swaps following September exploit.