Another Exchange Halts Withdrawals in the FTX Aftermath

Liquid Global – a lesser-known crypto exchange acquired by FTX – has announced suspending withdrawals on November 15. The move complies with the bankruptcy proceedings of FTX.

• Its official announcement read,

“Due to the Chapter 11 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 $120 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.