FTX-Owned Liquid Global Disables Crypto and Fiat Withdrawals
- Cryptocurrency exchange Liquid has suspended both fiat and crypto withdrawals in order to comply with regulations connected to FTX’s Chapter 11 bankruptcy filing.
- The company was acquired earlier this year by FTX, which had previously extended a $120 million loan to the Japanese exchange.
Shutterstock
Japanese crypto exchange Liquid, which was acquired by FTX earlier this year, has become the latest platform to disable withdrawals in the wake of FTX’s crisis, the company said via Twitter on 15 November.
According to the announcement, customers of Liquid will no longer be able to withdraw both fiat and cryptocurrencies from the platform. The suspension was enforced so the company is compliant with regulations relating to FTX’s filing for Chapter 11 bankruptcy protection, and was “not a security related halt”. Liquid said it will provide more information on a later date, and advised users to not deposit fiat or crypto on the platform until further notice.
FTX Trading acquired Liquid Group — which received a $120 million loan from FTX last year in the wake of a $90 million hack — and all of its operating subsidiaries back in May. Quoine, which operates Liquid, was one of the more than 100 entities that were named in FTX’s bankruptcy filing on Friday.
The Japanese exchange originally paused cryptocurrency withdrawals on Saturday, when reports emerged of abnormal movements in FTX’s hot wallets. The exchanged then claimed that customer assets on Liquid’s wallets were not impacted, but it would keep withdrawals suspended as a “precautionary measure” until “additional security checks” were completed.
- The New York Jurors took 4 fours of deliberating before pronouncing the former FTX CEO guilty of all seven charges of fraud and conspiracy to commit fraud.
- Bankman-Fried will now have to appear in court on 28 March, 2024, where he will face a potential maximum sentence of 115 years in prison.
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock
- A little over $13 million in altcoins were sent to crypto exchanges Binance and Coinbase in the past 24 hours, which is in accordance with a September court order.
- The court ordered a phased liquidation process, which allows the bankruptcy estate to sell $3.4 billion worth of digital assets over a certain period of time.
- Joseph Pimbley, a member of litigation consulting firm PF2 Securities, will try to rebuff testimonies from Caroline Ellison, Gary Wang, Nishad Singh, and Adam Yedidia.
- During his testimony Pimbley will try to establish a timeline for the FTX-Alameda line of credit, and convince the jury it fluctuated between $1 billion and $3 billion between 2021 and 2022.