FTX-owned Liquid exchange pauses trading after withdrawal halt | The Financial Express

FTX-owned Liquid exchange pauses trading after withdrawal halt

Liquid is not the only FTX subsidiary that has experienced problems as a result of the parent company’s ongoing bankruptcy proceedings.

FTX-owned Liquid exchange pauses trading after withdrawal halt
FTX's subsidiaries, including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, were discovered by Perella Weinberg to be in debt.

According to FTX Trading’s directives, liquid has ceased all trading activities on its platform, the company announced on Twitter on November 20. According to the statement, Liquid Exchange halted “all forms of trading” because the Chapter 11 procedure was ongoing in the Delaware courts, as reported by Cointelegraph.

As per Cointelegraph, five days ago, the exchange suspended all withdrawals from its platform due to Liquid’s operational halt, citing compliance with the conditions of voluntary Chapter 11 proceedings. FTX Japan, a local affiliate of FTX, had previously been asked by Japan’s Financial Services Agency to halt business orders on November 10.

Liquid is not the only FTX subsidiary that has experienced problems as a result of the parent company’s ongoing bankruptcy proceedings, as Cointelegraph has previously reported.

 Since FTX US purchased Voyager Digital’s assets in September, the bankrupt cryptocurrency lender has been looking for a new buyer. As the company has reopened the bidding process, cryptocurrency exchange CrossTower has been working on a revised offer for Voyager’s assets, Cointelegraph reported on Nov. 13.

Cointelegraph further noted that some of FTX’s subsidiaries, including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE, and Zubr Exchange, were discovered by Perella Weinberg to be in debt.

Due to FTX filing for Chapter 11 bankruptcy protection in the United States, the Japanese cryptocurrency exchange Liquid has stopped all trading.

(With insights from Cointelegraph)

Also Read: FTX shows need to regulate crypto before it gets big, says Bank of England

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First published on: 21-11-2022 at 16:49 IST