Cryptocurrency exchange Quantia disclosed the amount of assets it holds in FTX and that it is working to reinstate withdrawals.
The cryptocurrency exchange Quantia, which operates in Argentina and other Latin American countries, has around 35% of its assets tied up in FTX, a company that recently declared bankruptcy. This was announced in a press release sent to CryptoNews on November 16.
This announcement comes two days after it announced that FTX was “a service provider of Quantia” and suspended balance withdrawals momentarily. At the same time, in such statement it had requested its users not to make deposits until the service is normalized.
So far, balance withdrawals are still suspended, but internal transfers are enabled. Regarding the latter, the company clarified that trading within the platform works normally, since it was not affected by the FTX situation. However, it is still recommended not to make deposits.
As for the duration of the suspension of withdrawals, in the latest statement, Quantia informed that it suspended all operations with counterparties for the next 7 days. And it noted that this is “to safeguard the remaining assets until the situation in the entire crypto market is normalized.”
Quantia plans to reinstate withdrawals “very soon.”
“We are working to recover all the obligations owed to Quantia,” said Miguel Schweizer, Quantia’s co-founder, about their FTX exposure. And he mentioned that they are analyzing “different alternatives and possible scenarios to reinstate withdrawals very soon.”
Meanwhile, other exchanges have also suspended balance withdrawals from their users, such as Blockfi, Liquid, Aax and BitCoke. This situation comes after it came to light last week that FTX was illiquid and declared bankruptcy.
Such scenario, added to the fact that it later reported that it had been hacked, caused a wave of outflows in the cryptocurrency market, which caused its prices to fall.
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