Another FTX-Backed Crypto Exchange Suspends Withdrawals and More Could Follow
Crypto exchange Liquid suspended withdrawals of both fiat and cryptocurrency, citing FTX’s bankruptcy proceedings.
FTX’s deep integration into the cryptocurrency industry is having cascading effects on associated platforms.
In addition to exchanges suspending withdrawals, FTX-affiliated funds have reported losing capital, while previous deals are falling through
Cryptocurrency exchange Liquid has become the latest platform affected by the FTX collapse, with several other reporting struggles.
Liquid suspended withdrawals of both fiat and cryptocurrency, according to a post on its Twitter page. The exchange did so in order to comply with the requirements of bankruptcy proceedings of FTX.
Sam Bankman-Fried’s firm had acquired Liquid Group earlier this year, after offering it a $120 million loan. Liquid suggested that users withhold depositing both fiat and crypto on the platform until further notice