FTX-acquired Liquid pauses trading five days after suspending withdrawals

Crypto exchange Liquid stopped trading on its platform only five days after suspending fiat and crypto withdrawals on the platform.

“We have been instructed by S&C (law firm Sullivan & Cromwell) who act for FTX Trading, to pause all forms of trading on our exchange because of the operation of the Chapter 11 process in the Delaware Courts,” the exchange said in a Twitter statement on Sunday.

On Nov. 15, the company suspended fiat and crypto withdrawals to comply with FTX’s filing for Chapter 11 bankruptcy protection.

FTX Trading acquired Liquid Group and all of its operating subsidiaries in March. No purchase price was disclosed, but the now-failed crypto exchange had offered Liquid a $120 million loan beforehand after it lost $90 million to a hack.

This follows Saturday’s news that FTX is beginning to review its assets globally as part of the Chapter 11 proceedings.

“It will be a priority of ours in the coming weeks to explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues,” said new FTX CEO John J. Ray, who is in charge of the firm after Sam Bankman-Fried left.

Japan’s Financial Services Agency ordered FTX Japan on Nov. 10 to cease business operations and hold assets in the country equivalent to its balance-sheet liabilities until Dec. 9. FTX Japan was a result of FTX’s acquisition of the Liquid Group.

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Source: https://www.theblock.co/post/188635/ftx-acquired-liquid-pauses-trading-five-days-after-suspending-withdrawals?utm_source=rss&utm_medium=rss