The shutdown of Liquid comes just five days after the exchange suspended all withdrawals due to FTX’s bankruptcy filing.
Because FTX filed for Chapter 11 bankruptcy protection in the United States, the Japanese cryptocurrency exchange Liquid has suspended all trading.
Liquid has suspended all trading operations on its platform in accordance with FTX Trading’s instructions, the company announced on Twitter on November 20. According to the statement, Liquid Exchange halted “all forms of trading” due to the operation of the Chapter 11 process in Delaware courts.
“We have done so since while we assess the situation.” “We are working through these issues and will provide a more detailed update as soon as possible,” Liquid added.
The exchange suspended all withdrawals on its platform five days ago, citing compliance with the requirements of voluntary Chapter 11 proceedings. Japan’s Financial Services Agency had previously requested that another FTX subsidiary, FTX Japan, suspend business orders on November 10.
As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that has encountered difficulties as a result of its parent company’s ongoing bankruptcy proceedings. After FTX US purchased its assets in September, bankrupt crypto lender Voyager Digital has been looking for a new buyer.
Other FTX subsidiaries, such as LedgerX, which operates as FTX US Derivatives, have been actively working to separate from FTX. LedgerX was exempted as a debtor in FTX’s bankruptcy filing, according to a strategic review of FTX’s global assets. According to Perella Weinberg, a financial services firm, many of FTX’s regulated or licensed subsidiaries have “solvent balance sheets, responsible management, and valuable franchises.”
Perella Weinberg discovered that some of FTX’s subsidiaries are in debt, including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE, and Zubr Exchange.
