FTX-owned Liquid exchange pauses all trading after withdrawal halt

Published at: Nov. 21, 2022

Liquid has suspended all trading operations on its platform in line with instructions from FTX Trading, the firm announced on Twitter on Nov. 20. The statement indicates that Liquid exchange paused “all forms of trading” because of the operation of the Chapter 11 process in the Delaware courts.

“We have since done so while we assess the situation. We are working through these issues and will endeavor to give a fuller update in due course,” Liquid added.

Liquid’s operational halt comes five days after the exchange suspended all withdrawals on its platform, citing compliance with the requirements of voluntary Chapter 11 proceedings. Japan’s Financial Services Agency previously also requested another FTX’s local subsidiary, FTX Japan, to suspend business orders on Nov. 10.

As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that faced issues due to the ongoing bankruptcy proceedings of its parent firm. Bankrupt crypto lender Voyager Digital has been trying to find another buyer after FTX US acquired its assets in September. Crypto exchange CrossTower has been working on a revised offer for Voyager’s assets as the firm has reopened the bidding process, Cointelegraph reported on Nov. 13.

Related: Ripple to consider deals for FTX assets: Brad Garlinghouse

Other FTX subsidiaries, including LedgerX — which does business as FTX US Derivatives — have been actively working to spin out from FTX. According to a strategic review of FTX’s global assets, LedgerX was exempted as a debtor in FTX’s bankruptcy filing. According to a review by the financial services firm Perella Weinberg, many regulated or licensed subsidiaries of FTX have “solvent balance sheets, responsible management and valuable franchises.”

Perella Weinberg found that some FTX’s subsidiaries — including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE and Zubr Exchange — are debtors.

The Japanese cryptocurrency exchange Liquid is halting all trading due to FTX filing for Chapter 11 bankruptcy protection in the United States.

Tags
Bitcoin
Business
Cryptocurrency Exchange
Cryptocurrencies
Japan
Ftx
Related Posts
Creditors of Mt. Gox Bitcoin exchange to vote on draft refund plan
The trustee of hacked, now-defunct cryptocurrency exchange Mt. Gox has posted another update on the long-running process of refunding the exchange clients. Nobuaki Kobayashi, a Tokyo attorney appointed to act as civil rehabilitation trustee to manage Mt. Gox’s bankruptcy estate funds, announced Thursday that the Tokyo District Court ordered that “There were no grounds for disapproving the draft rehabilitation plan.” As previously reported, the plan was filed on Dec. 15, 2020. According to the announcement, the court has approved a repayment process schedule that includes a vote by creditors on the proposed refund plan. As part of the process, the …
Bitcoin / Feb. 25, 2021
Mt. Gox trustee files draft rehabilitation plan
On Dec. 15, Mt. Gox’s trustee Nobuaki Kobayashi filed a draft rehabilitation plan to refund Mt. Gox users. According to an official announcement posted on Mt. Gox website, the Tokyo District Court and an examiner will review the draft rehabilitation plan and determine whether to proceed with the rehabilitation proceedings as part of the draft rehabilitation plan. The move comes shortly after Kobayashi received another approval to extend the deadline for submitting a rehabilitation plan in October 2020. As reported, the Tokyo District Court extended the deadline until Dec. 15, 2020. Kobayashi previously obtained a number of similar deadline extensions …
Bitcoin / Dec. 15, 2020
FTX founder Sam Bankman-Fried removes ‘assets are fine’ flood from Twitter
Sam Bankman-Fried, founder and CEO of the troubled cryptocurrency exchange FTX, appears to have retracted his words about the safety of client holdings on FTX. Bankman-Fried has deleted a Twitter thread where he tried to assure customers that FTX and the assets on the platform were “fine.” FTX CEO took to Twitter to post the thread of four different tweets on Nov. 7, claiming that FTX had “enough to cover all client holdings.” Bankman-Fried also stated that the firm didn’t invest client assets and has been processing all withdrawals and “will continue to be.” “We have a long history of …
Bitcoin / Nov. 9, 2022
Binance shares wallet addresses and activity after proof of reserve pledge
In light of the FTX liquidity crisis and the almost-acquisition by Binance, Binance CEO Changpeng “CZ” Zhao assured his community that his network would provide full transparency on asset holdings. On Nov. 10, Binance published a new page titled “Proof of Assets” on which all details are available of its on-chain activity for its hot and cold wallet addresses. This comes only two days after the initial tweet from CZ on Nov. 8, in which he pledged to create a proof of reserve mechanism to ensure “full transparency” to the community. Binance released an official statement on the new page, …
Bitcoin / Nov. 10, 2022
Legal professionals astonished as SBF admits failures, apologizes 12 times in interview
Former FTX CEO Sam Bankman-Fried apologized or admitted failure at least 12 times during his appearance at the New York Times' DealBook Summit on Nov. 30. In a wide-ranging video interview, Bankman-Fried was asked to answer a number of questions surrounding the downfall of the now-defunct exchange, with some even suggesting that some of his statements could be used to incriminate him in legal proceedings. In a Nov. 30 Twitter post, crypto attorney Jeremy Hogan, Partner at Hogan & Hogan said that the “light cross-examination” of Bankman-Fried at the DealBook Summit has already returned “at least 3 incriminating statements so …
Bitcoin / Dec. 1, 2022