Sam Bankman-Fried’s FTX exchange acquired the Japanese crypto trading platform Liquid Group and its subsidiaries in February 2022.
The Japanese cryptocurrency exchange Liquid is the latest company to halt withdrawals amid the ongoing crisis of centralized crypto exchanges.
The FTX-owned crypto exchange Liquid took to Twitter on Nov. 15 to officially announce a suspension of fiat and crypto withdrawals on its Liquid Global platform.
Addressing the reasons for the suspension, Liquid cited compliance with the requirements of voluntary Chapter 11 proceedings in the United States, noting:
“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.”
The exchange emphasized that the latest measures are “not a security related halt,” adding that it will provide more information at a later date. The firm also suggested that its users should not deposit either fiat or crypto until more updates are available.
Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.
Until further notice we would suggest to not deposit either FIAT or Crypto
We will provide updates when available.
— Liquid Global Official (@Liquid_Global) November 15, 2022
The news comes shortly after Liquid claimed that customer assets on Liquid wallets were not impacted by the FTX contagion, with the FTX exchange halting all withdrawals on Nov. 10.
“We have conducted initial checks and see no unusual activity,” Liquid said in a tweet on Nov. 12. However, Liquid immediately announced a suspension of crypto withdrawals on Liquid Global as a “precautionary measure” until “additional security checks are completed.”
The Nov. 12 statement was Liquid’s first appearance on Twitter since late August 2022. It came shortly after Japan’s Financial Services Agency requested FTX Japan to suspend business orders on Nov. 10.
Founded in 2014, Liquid is a major cryptocurrency exchange licensed under Japan’s Payment Services Act through its Japanese operating entity, Quoine Corporation. As previously reported by Cointelegraph, FTX acquired Liquid Group and its subsidiaries in February 2022.