Cryptocurrency exchange, Liquid Global, has paused all forms of trading approximately five days after suspending withdrawals.
Announcing this in a Twitter post, Liquid stated the exchange had to do so due to the FTX Chapter 11 proceedings currently ongoing in the Delaware Courts. It was instructed to do so by the legal team (law firm Sullivan and Cromwell) overseeing the FTX court operations.
According to a statement by the exchange,
“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.”
Liquid Global is subject to these instructions because the exchange was acquired by FTX earlier this year in March. FTX runs the Liquid Group and all its operating subsidiaries, including Quoine Corporation.
In light of this, Liquid suspended fiat and crypto withdrawals a few days back, following FTX’s filing for Chapter 11 bankruptcy protection.
Following FTX's acquisition of Liquid, FTX agreed with Liquid to provide its existing Japanese users with services in compliance with Japanese laws and will transfer its existing Japanese users to Quoine.
But with the ongoing bankruptcy proceedings, Japan's Financial Services Agency has ordered FTX Japan arm to suspend operations in the country and hold assets equivalent to its balance-sheet liabilities until December 9.
Following these recent developments and announcements, Liquid Global stated it is still assessing the situation and sorting these issues out. The exchange promised to provide a more detailed update in due time.
