No, it’s verifiably backed 1:1 by bitcoin. https://help.blockstream.com/hc/en-us/articles/900001408623-How-does-Liquid-Bitcoin-L-BTC-work

nostr:npub1jg552aulj07skd6e7y2hu0vl5g8nl5jvfw8jhn6jpjk0vjd0waksvl6n8n did start it, but it is managed by a group, not just them. Again, I’m not saying hold L-BTC, I’m saying take advantage of its privacy perks on the way to another lightning or bitcoin wallet.