Liquid’s operational stop came five days after the exchange suspended all withdrawals because of FTX’s bankruptcy filing.
Latest reports indicate that Liquid has suspended all trading Activities on its platform in line with the instructions from FTX trading, the company confirmed on Twitter on November 20. The statement shows that Liquid exchange stopped “all forms of trading” due to the operation of the Chapter 11 process in the Delaware courts.
The exchange added:
“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’s operational suspension comes barely five days after the exchange suspended all withdrawals on its platform, citing compliance with the needs 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 November 10.
Based on previous reports, Liquid is not the only FTX subsidiary that encountered issues because of the current bankruptcy proceedings of its parent company. Bankrupt cryptocurrency lender Voyager Digital has been attempting to look for another buyer after FTX US bought its assets in September. CrossTower crypto exchange has been working on a revised offer for Voyager’s assets since the company reopened the bidding process, based on November 13 reports.
The other FTX subsidiaries, including LedgerX – which does a lot of business as FTX US Derivatives – have been actively working to spin out from FTX. Based on a strategic review of FTX’s global assets, LedgerX was exempted as a debtor in FTX’s bankruptcy filing.
Buy Bitcoin NowIn that context, according to a review by the financial services firm Perella Weinberg, most regulated or licensed subsidiaries of FTX have “solvent balance sheets, responsible management, and valuable franchises.”
Perella Weinberg discovered that some of FTX’s subsidiaries – including FTX Japan, FTX Turkey Teknoloji Ve Ticaret, FTX Exchange FZE, Quoine, FTX EU, and Zubr Exchange – are debtors. The Japanese crypto exchange Liquid is stopping all trading because of FTX filing for Chapter 11 bankruptcy protection in the US.
