After the hack attack on warm wallets of Liquid last week, the exchange received funding from FTX.
The digital exploit left the Japan-based crypto exchange Liquid almost $100 million short, hence the provision the $120 million debt funding from FTX.
Liquid Group and FTX Trading announced today that the funds are helpful for Liquid in expanding licensing prospects for Japan and Singapore, as well as improving the balance sheet of the company to have easier access to said jurisdictions. Additionally, enhancing customer support, generating new capital and increasing liquidity were the benefits mentioned in the announcement.
We are thrilled to announce @Liquid_Global and @FTX_Official announced today the closing of a US$120,000,000 debt financing, and the start of a good faith discussions in pursuit of further collaborative opportunities. 🤝
For more information➡️ https://t.co/J7Fxl1p85b
— Liquid Global Official (@Liquid_Global) August 26, 2021
Sam Bankman-Fried, the CEO and founder of FTX supports that the debt funding supports the collective attempts of FTX and Liquid to provide better service and also bolster the adaptation of cryptocurrencies. Bankman-Fried also said that this affiliation makes it possible for both companies to solidify and emphasize the fact that a combination of knowing customers and recognizing the significance of regulating the crypto industry are two critical aspects for the future.
FTX issued the funding to Liquid a week after the major hacker exploit that compromised the warm wallets stealing $97 million from multiple tokens, including Ethereum (ETH), XRP, Bitcoin (BTC), and stablecoins.
The update of the hacker incident aftermath by Liquid earlier this week assured clients that losses will not be suffered due to the incident and that balances will remain unaffected.
Incident update – 25th August 2021:
We want to reassure our users that they will not suffer any loss due to the incident that took place on the 19th of August. There will be no impact on user balances at Liquid. https://t.co/UaakRgafFV
— Liquid Global Official (@Liquid_Global) August 25, 2021
Liquid’s hacker incident marks the second major hacker exploit after $611 million were hijacked from Poly Network in early August. Since then, the hacker has returned all of the stolen funds.