A Japanese exchange owned by FTX is shutting down following bankruptcy. The Bitcoin exchange linked to FTX announced its bankruptcy on Twitter today.
Bitcoin exchange linked to FTX has stopped its operations
Liquid Global, which was acquired by FTX earlier this year, said it has stopped all withdrawals after FTX filed for Chapter 11 bankruptcy in the US. The company reported on Twitter that customers cannot receive either fiat or cryptocurrencies. FTX, which gave Liquid a $120 million loan following a $90 million hack in 2021 without agreeing to buy the exchange outright, did not disclose how much it paid to acquire Liquid. Liquid is now stopping withdrawals from FTX in its Chapter 11 bankruptcy filing in the US. He announced the following on his official Twitter account today:
Quoine Pte is stopping all withdrawals, both fiat and cryptocurrency. More information will be provided when available
Due to the Chapter 11 filing by FTX Trading International the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchage (Quoine Pte.) is halting all withdrawals – both fiat and crypto currency.
More information will be provided as it becomes available
— Liquid Global Official (@Liquid_Global) November 15, 2022
The exchange stressed that the latest measures are “not a safety-related stoppage.” She added that she will provide more information at a later date. The firm also recommended that its users not deposit fiat or cryptocurrencies until further updates are available.
Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.
Until further notice we would suggest to not deposit either FIAT or Crypto
We will provide updates when available.
— Liquid Global Official (@Liquid_Global) November 15, 2022
Liquid is run by another entity, Quoine, which was named in FTX’s bankruptcy filing last week. Quoine has applied to register with the Monetary Authority of Singapore, but the regulator said this week it will consider FTX developments.
Liquid’s announcement came shortly after the FTX crisis
Liquid reported on November 10 that its client funds were safe. He announced that he was suspending operations shortly after claiming he was unaffected by the FTX crisis. On November 12, Liquid tweeted, “We did preliminary checks and did not see any unusual activity.”
Since the end of August 2022, Liquid had not posted anything on Twitter until the November 12 announcement. This happened shortly after the Japan Financial Services Agency asked FTX Japan to cease work orders on November 10.
Customer assets on Liquid wallets have not been impacted in connection with reports of abnormal movements in https://t.co/rPBTsUFBgP hot wallets. We have conducted initial checks and see no unusual activity.
— Liquid Global Official (@Liquid_Global) November 12, 2022
Liquid, a major cryptocurrency exchange founded in 2014, is authorized under the Japan Payment Services Act through its Japanese business entity. In February 2022, FTX acquired Liquid Group and its subsidiaries.
FTX crash drives Bitcoin bulls out of the market
The bankruptcy of the exchange has been a major topic of discussion in the crypto market for over a week. Sam Bankman-Fried, who founded FTX and its affiliated trading company Alameda Research, lost all credibility in about a week. After the destruction, Bitcoin price hit a one-year low of $15,682.69. As Kriptokoin.com, we have discussed the frequently asked questions about FTX in this article.
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