Sam Bankman-Fried’s FTX exchange purchased Liquid Group, which is a Japanese crypto trading platform, in February 2022.
On November 15, Liquid Exchange is halting all withdrawals, including fiat currency and cryptocurrency, as a result of FTX Trading International.
The ultimate beneficial owner of Liquid exchange stated that the filing of a voluntary Chapter 11 proceeding in the United States is one of the reasons for the suspension.
The latest actions are “not a security related halt,” the exchange emphasized, adding that it will provide more details later.
Additionally, the company advised users to hold off on making any deposits in fiat or cryptocurrency until more information was available.
The news comes shortly after Liquid’s assertion that customer assets in Liquid wallets were unaffected by the FTX contagion after the FTX exchange stopped all withdrawals on November 10.
On November 12, Liquid tweeted, “Customer assets on Liquid wallets have not been impacted in connection with reports of abnormal movements in FTX.com hot wallets. We have conducted initial checks and see no unusual activity.”
However, as a “precautionary measure,” Liquid immediately announced that cryptocurrency withdrawals from Liquid Global would be suspended until “additional security checks are completed.”
Since late August 2022, Liquid hadn’t posted anything on Twitter until the statement on November 12.
It happened soon after the Financial Services Agency of Japan asked FTX Japan to halt business orders on November 10.