Business Technology

FTX-owned Liquid halts trading after withdrawal halt

Liquid’s operational halt comes five days after the exchange suspended all withdrawals due to FTX’s bankruptcy filing.

Following directives from FTX Trading, Liquid stated through Twitter on November 20 that all trading activity has been suspended on the platform. The statement claims that “all forms of trading” on the Liquid exchange have been suspended while the Chapter 11 process is carried out in the Delaware courts.

“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,” Liquid added.

Five days after the exchange froze all withdrawals on its platform, Liquid halted operations to comply with the criteria of voluntary Chapter 11 proceedings. FTX Japan, another of FTX’s local subsidiaries, was also asked by Japan’s Financial Services Agency to halt business orders on November 10.

After FTX US purchased the assets of defunct crypto lender Voyager Digital in September, the latter has been actively seeking a new buyer. It was previously reported that FTX’s insolvency had caused problems at other FTX subsidiaries, including Liquid. It was also revealed on November 13 that cryptocurrency exchange CrossTower was preparing a new bid for Voyager’s assets following the company’s reopening of the bidding process.

LedgerX, which operates as FTX US Derivatives, is just one of many FTX subsidiaries working hard to split from the parent company. LedgerX was determined to be exempt as a debtor in FTX’s bankruptcy case based on a strategic analysis of FTX’s global assets. Financial services firm Perella Weinberg found that many FTX subsidiaries that require regulatory or licensing approval have “solvent balance sheets, responsible management, and significant franchises.”

FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE, and Zubr Exchange were all identified as debtors by Perella Weinberg.

When FTX filed for Chapter 11 bankruptcy in the United States, the Japanese cryptocurrency exchange Liquid halted all trade.