Liquid Global, a cryptocurrency exchange with headquarters in Japan that was formerly owned by the bankrupt exchange FTX, stopped all trading after being “instructed” to do so by the bankruptcy attorney’s office.
Trading Stopped Indefinitely
A tweet from Liquid Global’s official Twitter account on Sunday said that the firm had been instructed to stop all forms of exchange by its parent company’s representatives [law firm Sullivan & Cromwell].
The company added that it would continue to monitor the situation and that it was everything to work through the issues.
As at the time of writing, a similar message was also visible on the exchange’s website’s home page. A more thorough update will be provided “in due course,” according to the notification.
Trading was halted after the same exchange said on November 15 that all customer withdrawals had been stopped “in line with the provisions of voluntary Chapter 11 proceedings in the United States.”
FTX Loan And Major Acquisitions
Following a breach on Liquid in August of last year that cost it over $86 million, FTX gave it a $120M loan.
The subsequent acquisition of Liquid by FTX in February of this year for an unknown sum was considered a step towards FTX’s expansion into Japan.
FTX had made several big acquisitions before adding Liquid Global to its books. A few of them included; Storybook Brawl (popular card game company), Bitvo Exchange, which was Canada’s premier exchange, and Voyager which was another popular crypto exchange.
Also acquired by FTX were Blockfolio, a mobile portfolio tracking app for cryptocurrencies, and a 10% stake in IEX with the option to take over completely in the next two and a half years according to a document dated June 7 this year.
On November 11, FTX filed for bankruptcy after a deposit run and exchange meltdown. Sam Bankman-Fried also gave notice of his resignation as CEO at the same time.
Alameda Research, a significant cryptocurrency market maker and parent firm of FTX, is one of over 130 FTX-related businesses that are included in the Chapter 11 bankruptcy.
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