When fiat and cryptocurrency withdrawals were temporarily disabled on the Liquid Global platform on November 15, the FTX-owned cryptocurrency exchange Liquid announced this on Twitter.

Liquid Suspends Deposits

The collapse of crypto firms associated with Sam Bankman-Fried has already had a severe rippling effect on various organizations inside the ecosystem. For example, the CEO of Binance, CZ, had previously warned that the cryptocurrency industry is staring down the barrel of cascading repercussions.

Liquid, one of the leading cryptocurrency exchanges in Japan, said on Monday that it would be suspending deposits and withdrawals owing to concerns relating to FTX’s insolvency. In February 2022, FTX acquired Liquid and all of its affiliated companies. 

Earlier, it announced that it would suspend withdrawals of both cash and cryptocurrency. As justification for the suspension, it referred to the prerequisites of voluntarily initiating chapter 11 operations in the United States. Since its founding in 2014, the Liquid exchange has been in more than one hundred countries.

U.S. Chapter 11 rules have caused Liquid Global to halt fiat and cryptocurrency withdrawals. Therefore, we want to urge that, until further notice, you do not deposit any fiat currency or cryptocurrency.

FTX Group Files For Bankruptcy

Alameda Research and FTX, in addition to several other businesses, were involved in the proceedings of FTX Group filing for bankruptcy. Around 130 further connected firms, including FTX.com and Alameda Research, initiated the voluntary procedures under chapter 11 of the bankruptcy code. 

The corporation has said that it intends to evaluate and monetize its assets to serve its stakeholders better. Sam Bankman-Fried, who had been serving as chief executive officer, has resigned due to the revelation. 

Therefore that position is now vacant. The struggling corporation announced that John J. Ray III would take over as CEO of FTX.

The announcement comes not long after Liquid said that client assets stored on Liquid wallet were not affected by the FTX outbreak. Even though the FTX exchange halted all withdrawals on November 10 due to the spread of the virus.

In a tweet dated November 12, Liquid said they completed their preliminary inspections and found nothing out of the ordinary. On the other hand, Liquid promptly declared that it would be suspending cryptocurrency withdrawals on its Liquid Global platform as a “precautionary step” until “further security tests are performed.”

After not being active on Twitter since late August 2022, Liquid made his return on November 12 with a message. But unfortunately, it occurred only a short time after the Financial Services Agency of Japan recommended that FTX Japan cease all business orders on November 10.

The bitcoin price has significantly declined over the last week, falling by around 14.65%. According to the price monitoring tool CoinMarketCap, the price of one Bitcoin (BTC) is now sitting at $16,861 and has decreased by 0.68% in the last twenty-four hours. Also, the price of FTX Token (FTT) is now at $1.81, representing an increase of 24.26% over the last 24 hours.