Yesterday, a major crypto exchange in Japan, Liquid Global, halted all withdrawals. This comes after a series of tweets made by the company claiming that user funds have not been affected by FTX’s collapse. On the 12th of November, Liquid Global shut down withdrawal services as a precautionary move. This shutdown allegedly lowered the exposure of Liquid to FTX. After running some deep security checks, Liquid continued withdrawals on its platform, claiming that everything is okay. Yesterday, just three days after this, Liquid halted all withdrawals. This time, however, they stated that this halt has nothing to do with the safety or security of the exchange. According to a recent tweet, the exchange halted all withdrawals because of FTX’s bankruptcy filing.
For your information, Liquid Global was owned by FTX. Nevertheless, this does not necessarily mean that the exchange will collapse as well. The recent withdrawal halt is related to the Chapter 11 proceedings in the United States. Since FTX was the ultimate beneficiary owner of Liquid, they are required to halt all withdrawals after the recent events. While we wait for more announcements from the platform, crypto Twitter is doing its thing and analyzing the situation. The founder of IBC Group, @MarioNawfal made a tweet regarding the situation, claiming that “Dominos continue to fall…”. Nevertheless, the crypto community was quick to respond. Understanding that the main goal of the tweet was to spread FUD, people in the comments explained the situation as it is. To keep this short, Liquid had no choice but to halt withdrawals and stop all operations because of the bankruptcy filings from FTX.
Liquid Global Halts All Deposits
Just some hours ago, Liquid Global disabled deposits on its platform. This comes after the exchange shut down most of its operations yesterday. There have been numerous reports that people have initiated crypto deposits before the announcement but the funds have not appeared in their wallets. Nevertheless, Liquid informed their users that they must contact the company’s support team and they will be assisted. Until further notice, the platform remains unusable.