Liquid Secures $120 Million Loan From FTX Following Hack
- Liquid and FTX closed a $120 million debt financing and will pursue additional collaboration.
- The loan will be used to strengthen Liquid’s capital position after suffering a $90 million hack last week.
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Liquid Group announced it has secured $120 million in debt financing from the FTX exchange after suffering a $90 million hack last week. According to an announcement published on 26 August, the new funds will help Liquid improve its balance sheet and expand its licensing opportunities in Japan and Singapore.
“The new funds come at an important point in Liquid’s development and will strengthen its capital position, thereby accelerating new capital generation projects and providing critical liquidity, which underpins its commitment to premier customer support and regional leadership in the blockchain industry,” the company said in the announcement.
Sam Bankman-Fried, the Founder and CEO of FTX Trading, said that FTX’s culture of building desirable products, combined with the sense of urgency following Liquid’s recent hack, will add to the innovative opportunities that the collaboration offers.
The financing comes after liquid suffered an attack that saw around $90 million worth of tokens moved off the platform. In an announcement published on 19 August, Liquid said that only its hot wallets were affected and it was moving all of its assets into cold storage. This was the second time the exchange suffered a security breach in the past 12 months—in November 2020, Liquid warned that an intruder gained access to its data, but assured users that all funds were safe.
- New bankruptcy court filings revealed that FTX owed its top 50 creditors around $3 billion, with sums ranging from $21 million and $226 million.
- Japanese crypto exchange Liquid, which was acquired by FTX in May, suspended all trading on its platform only five days after pausing crypto and fiat withdrawals.
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- 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.
- The company said the move was made “to protect and preserve assets”, and was caused by “extreme market conditions”.
- Over the last few days the company has also moved massive amounts of wBTC and ETH from the Aave platform to the FTX exchange for unknown reasons.