KITTO

Liquid Network has taken its next step toward recovery by restoring semi-automated swaps between Bitcoin and L-BTC through supported providers, giving users a way to trade between assets without protocol-level volume caps. Direct redemptions through the federation, known as peg-outs, remain strictly frozen because on-chain reserves currently cover about 85.8% of outstanding L-BTC—leaving an unresolved deficit of roughly 603 BTC following the September exploit where 4,000 BTC was drained and 3,400 BTC subsequently returned. Federation operators have deployed patched reserve-management software, but the federation made it clear that full one-for-one collateralization and rigorous security sign-offs are required before direct redemptions can resume. Providing secondary swap liquidity helps relieve immediate pressure on holders, yet the real test for community confidence remains whether Blockstream and federation members can clearly explain how that remaining 600 BTC gap will be filled.

On-chain trackers flagged a significant revival from the Drift Protocol exploiter, routing 25,710 ETH—roughly $61.2 million—into Tornado Cash following nearly two months of dormancy. The address tied to the massive April incident on the Solana-based perpetual DEX still controls around 81,454 ETH, leaving roughly $194 million in reserve. What stands out isn't just the return to privacy mixers, but the broader liquidation roadmap: while depositing into Tornado Cash obscures traceability rather than dumping directly onto spot order books, these tranches historically signal staged OTC cash-outs and decentralized liquidations. With such a heavy stash still parked in hacker-controlled wallets, the sudden reactivation keeps a noticeable supply overhang hanging over market participants monitoring large whale movements.

Pump.fun has officially launched its PreStocks pairing feature, enabling users to create and trade coins linked to pre-IPO companies like OpenAI and Anthropic directly on the platform, according to CoinMarketCal.

This move highlights an interesting shift where retail platforms are extending beyond typical memecoins to tap into hype around high-profile AI firms and traditional equities. While trading synthetic pre-IPO exposure creates new engagement and volume, it will be important to monitor how these pairs manage pricing accuracy, liquidity depth, and regulatory scrutiny over time.