Japanese cryptocurrency exchange Liquid is the latest company to halt withdrawals amid the ongoing crisis on centralized cryptocurrency exchanges.
The FTX-owned cryptocurrency trading platform took to Twitter on November 15 to officially announce the suspension of cash and cryptocurrency withdrawals on its Liquid Global platform.
Addressing the reasons for the suspension, Liquid cited compliance with the requirements for voluntary Chapter 11 proceedings in the United States, stating:
“Due to a Chapter 11 filing by FTX Trading International, the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchange (Quoine Pte.) is suspending all withdrawals – fiat and crypto.”
The exchange confirmed that the recent measures “are not a security-related halt,” adding that it will provide more information at a later date. The company also suggested that its users should not deposit crypto or fiat currencies until more updates are available.
The news comes shortly after Liquid claimed that customer assets in liquid wallets were not affected by the FTX infection, with the FTX exchange halting all withdrawals on November 10.
“We have conducted preliminary checks and do not see any unusual activity,” Liquid said in a November 12 tweet. However, Liquid immediately announced the suspension of cryptocurrency withdrawals on Liquid Global as a precaution until “additional security checks are completed.”
The November 12 statement was Liquid’s first appearance on Twitter since late August 2022. It came shortly after Japan’s financial services agency FTX Japan asked it to suspend work orders on November 10.
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Founded in 2014, Liquid is a major cryptocurrency exchange licensed under the Japanese Payment Services Act through its Japanese operating entity, Quoine Corporation. As previously reported by Cointelegraph, FTX acquired the Liquid Group and its subsidiaries in February 2022.