Another cryptocurrency exchange stalls withdrawals, FTX dominoes seem to have no end
The implosion of FTX seems to have generated another victim, Liquid (broker of Japanese origin), has just announced the suspension of withdrawals.
A few hours ago the brokerage declared on twitter:
🇧🇷Fiat and cryptocurrency withdrawals have been suspended at Liquid Global in compliance with the requirements of voluntary Chapter 11 procedures in the United States.
Until further notice, we suggest not to deposit FIAT or Crypto
We will provide updates when available.🇧🇷
Liquid is a cryptocurrency exchange with government authorization to operate, it was bought in April by FTX. Shortly before the acquisition, the company suffered a US$90 million hack, but managed to restructure itself after receiving US$120 million from the new owner.
The Japanese brokerage reported that withdrawal locks are not related to security issues, leading users to consider liquidity issues (lack of assets).
In the FTX dominoes, Liquid is just another
As we showed in the episode “FTX imploded and took the cryptocurrency market, what happened?” available below, FTX Global has gained support from major players in the traditional financial market.
As a result, she managed to capitalize and invest in dozens of cryptocurrency projects.
Even companies that are not directly linked to the brokerage can be affected, as is the case of a subsidiary of the Huobi exchange that is unable to withdraw US$18 million, of which 13 were from customers.
A list of companies in the group’s portfolio shows a few dozen companies such as Paxos, Dune, Genesis Digital, Polygon and several others:
As implosion developments unfold, cryptocurrency investors should withdraw their cryptocurrencies from all centralized platforms as a precaution.