Liquid exchange halts all trading after suspending withdrawals

FTX-owned Liquid exchange has halted trading activities on its platform a few days after suspending withdrawals.

Japanese-based crypto exchange, Liquid, has announced that it had halted trading activities on its platform. The company announced this via Twitter on Sunday, November 20th.

Dear Customers,

We have been instructed by S&C, who act for FTX Trading, to pause all forms of trading on our exchange because of the operation of the Chapter 11 process in the Delaware Courts.

— Liquid Global Official (@Liquid_Global) November 20, 2022

Liquid is halting trading activities on its platform due to the ongoing Chapter 11 bankruptcy proceedings of FTX. FTX bought the crypto exchange, and its activities have been affected since FTX collapsed. The crypto exchange said;

“We have since done so while we assess the situation. We are working through these issues and will endeavor to give a fuller update in due course.”

This latest cryptocurrency news comes five days after the exchange halted withdrawals on its platform. At the time, Liquid said the decision to pause all crypto and fiat withdrawals on its platform was because of the ongoing Chapter 11 bankruptcy proceedings involving FTX and its affiliates. 

Asides from Liquid, some FTX subsidiaries have been struggling to continue operating since the crypto exchange collapsed roughly two weeks ago.

Cryptocurrency lending platform Voyager Digital had previously agreed to an acquisition deal with FTX US. However, with FTX facing bankruptcy, Voyager Digital is now shopping for a new buyer, and Binance US is set to make another offer for the company.

LedgerX, another company that was acquired by FTX US, has been actively working to spin out from the company. The strategic review of FTX’s global assets revealed that LedgerX was exempted as a debtor in FTX’s bankruptcy filing.

The review, which was carried out by the financial services firm Perella Weinberg, pointed out that various regulated or licenced subsidiaries of FTX are safe since they have solvent balance sheets, responsible management and valuable franchises.

FTX’s ongoing bankruptcy proceedings continue to reveal more information about the company and Alameda Research. FTX’s new CEO and Chicago-based attorney, John J. Ray III, said FTX’s situation shows a complete failure of corporate controls.