The cryptocurrency exchange Liquid announced on Tuesday the suspension of withdrawals in fiat money and cryptoassets, as a result of the bankruptcy filing of FTX, its parent company.
This was briefly reported by the Japanese cryptocurrency exchange on its official Twitter account, where it specified that “more information” will be provided at a later date.
“Due to the Chapter 11 filing by FTX Trading International, Liquid Exchange is halting all withdrawals in both fiat and cryptocurrency,” they said.
This comes three days after Liquid reported suspending withdrawals in cryptocurrencies only. That was one day after FTX filed for bankruptcy, as they noted on their Twitter account on November 12.
FTX acquired the entire Liquid group, as well as its operations and other subsidiaries, last May. Although the relationship between the two companies goes back a long way.
In 2021 alone, FTX injected USD 120 million into Liquid, as a way to assist them after the hack they suffered.
Now, with the bankruptcy of what was the second largest bitcoin exchange in the market, Liquid Group seems to be seriously affected. This, as this company is operated by Quoine, an institution named last Friday, in the FTX bankruptcy filing.
The suspension of fiat and cryptocurrency withdrawals on the Liquid exchange comes after its Argentine peer, Quantia, also restricted operations for its users, likewise, because of the announced bankruptcy of FTX.
Quantia acknowledged that the collapsed FTX was a service provider, and due to the “information failure” and the crisis derived from the collapse of the exchange, they are now unable to operate normally.