Liquid operational halt comes five days after the exchange suspended all withdrawals due to FTX’s bankruptcy filing.
Due to FTX filing for Chapter 11 bankruptcy protection in the United States, the Japanese cryptocurrency exchange Liquid has stopped all trading.
According to FTX Trading’s directives, Liquid has ceased all trading activities on its platform, the company reported on Twitter on November 20.
According to the statement, Liquid Exchange halted “all types of trade” because the Chapter 11 procedure was ongoing in the Delaware courts.
“We have since taken this action as we evaluate the situation. We are addressing these concerns and will make an effort to provide a more thorough update in due course,” Liquid continued.
Five days ago, the exchange froze all withdrawals from its platform due to Liquid’s operational stoppage, citing compliance with the conditions of voluntary Chapter 11 proceedings.
FTX Japan, a local affiliate of FTX, has previously been asked by Japan’s Financial Services Agency to halt business orders on November 10.
Liquid is not the only FTX subsidiary that has experienced problems as a result of the parent company’s ongoing bankruptcy procedures, as previously documented.
Since FTX US purchased Voyager Digital’s assets in September, the bankrupt cryptocurrency lender has been looking for a new buyer.
As the company has reopened the bidding process, cryptocurrency exchange Cross Tower has been working on a revised offer for Voyager’s assets.
Other FTX affiliates, including LedgerX, which operates as FTX US Derivatives, have been aggressively attempting to split off from the parent company.
LedgerX was excluded as a debtor in FTX’s bankruptcy filing in accordance with a strategic analysis of FTX’s international assets.
Many of FTX’s regulated or licensed companies, according to an examination by the financial services company Perella Weinberg, have “sustainable balance sheets, prudent management, and valuable franchises”.
Some of FTX’s subsidiaries, including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE, and Zubr Exchange, were discovered by Perella Weinberg to be in debt.
