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Japan-based crypto exchange Liquid halts all trading activity

By:
on Nov 20, 2022
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  • Liquid has suspended all trading amid the FTX bankruptcy process.
  • FTX acquired Japan based Liquid in February 2022.
  • Liquid paused all fiat and crypto withdrawals last week, with the action following FTX’s implosion.

Liquid, a crypto-fiat exchange acquired by FTX earlier this year, has paused all trading activity on its platform.

The platform, which paused withdrawals last week, said in a tweet that the action follows events around FTX, an exchange whose shocking collapse could turn out to be an irreparable blow to entire crypto industry.

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Liquid exchange halts all trading

As noted in the Liquid Global announcement, the halt on trading was instructed by the FTX legal team.

The Liquid team told customers on Sunday, 20 November:

“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.”

FTX is in the process of reviewing its assets strewn across multiple subsidiaries across the globe, and the suspension of trading on the Japan-based crypto exchange is one of the steps towards that.

John J. Ray III, a prominent restructuring lawyer and the new FTX CEO, said in a press release on Saturday:

“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises.”

According to Ray, while some FTX subsidiaries like LedgerX and Embed Clearing were not debtors in the ongoing Chapter 11 proceedings, others were, including FTX Japan and Quoine Pte.

The coming weeks could see a lot of activity in relation to the subsidiaries, Ray added, with actions such as sales and recapitalizations expected.