This Crypto Currency Exchange Just Suspended Withdrawals

The FTX contagion keeps spreading. Among the most recently affected companies is the Liquid exchange, which suspended withdrawals on Tuesday.

The exchange stated that it had done so in order to comply with regulations relating to FTX’s bankruptcy filing.

The company said on Twitter that,

“Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.”

It advised users against depositing any fiat or crypto until further notice, adding that they would provide updates as they become available.

As reported, FTX  declared bankruptcy on November 11, following a swift and turbulent collapse of the exchange. At the same time, Sam Bankman-Fried resigned as CEO. Approximately 130 affiliated companies are also part of the Chapter 11 bankruptcy voluntary proceedings, including Alameda Research, the exchange’s parent company.

Notably, Liquid was acquired by FTX just this year.

Cryptonews.com reported in February that the company was preparing to enter Japan via the acquisition of the Liquid group, the owner of a licensed Japanese crypto exchange, Quoine. The deal was completed in April.

Also, back in August 2021, Liquid Global saw more than $90 million stolen in a hack. Soon afterward, it announced that FTX would lend it $120 million. The two said that they had closed a “debt financing, and that they have entered good faith discussions in pursuit of further collaborative opportunities.” A few months later, they revealed the acquisition.

At 10:20 UTC on Wednesday morning, Liquid’s token QASH is up 11% in a day and down 66% in a week. Overall, it dropped 70% in a month and 90% in a year, currently trading at $0.00729.

QASH 30-day price chart:

Meanwhile, the Japanese Financial Services Agency (FSA) requested that FTX’s subsidiary FTX Japan suspend business orders on November 10. Following this, the Japanese government said that it would do all it could to protect customers of FTX Japan, while the exchange claimed that its clients’ funds are safe.

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