Crypto exchange Liquid suspended both fiat and crypto withdrawals in order to comply with regulations relating to FTX's filing for Chapter 11 bankruptcy protection.
"Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States," the company's official Twitter account stated. "Until further notice, we would suggest to not deposit either fiat or crypto."
FTX Trading Ltd. acquired Liquid Group and all of its operating subsidiaries — such as Quoine — in May. No purchase price was disclosed, but the now-failed crypto exchange had offered Liquid a $120 million loan beforehand.
The news comes after Japan's Financial Services Agency ordered FTX Japan, on Nov. 10, to cease business operations and to hold assets in the country equivalent to its balance-sheet liabilities until Dec. 9.
FTX Japan was the result of FTX’s acquisition of Liquid Group.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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