Liquid Global – a lesser-known crypto exchange acquired by FTX – has announced suspending withdrawals on November src5. The move complies with the bankruptcy proceedings of FTX.
Its official announcement read,
“Due to the Chapter srcsrc filing by FTX Trading International the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchange (Quoine Pte.) is halting all withdrawals – both fiat and crypto currency. More information will be provided as it becomes available.”
FTX was drained over $450 million worth of assets immediately after filing for bankruptcy last week, following which Liquid Global disabled crypto withdrawals as a precautionary measure.
The platform resumed its services the same day after conducting thorough security checks of internal systems.
Liquid clarified that the latest suspension, however, is not security-related.
The Japanese crypto exchange was acquired by FTX in April this year. The deal was first announced in February and was expected to complete by the end of March.
CEO Mike Kayamori had previously blamed the delay on “some human errors” and blamed the existing international wire transfer for it, calling the system “fundamentally broken,” a problem that stablecoins can solve.
Before the outright acquisition, Liquid Global received $src20 million from FTX after suffering a security breach that drained $90 million worth of crypto assets.
The debt financing was secured from the Sam Bankman-Frie-led exchange to speed up capital generation projects, as well as provide liquidity.
Meanwhile, it was recently reported that FTX may have over a million creditors.
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