Liquid Global, Crypto Exchange Owned by FTX, Halts Withdrawals

The Japanese exchange was acquired by FTX earlier this year.

By Oliver Knight, Sheldon Reback

Nov 15, 2022 at 1:11 p.m. UTC

Updated Nov 15, 2022 at 3:29 p.m. UTC

CDCROP: Australian Made CMI H2D Home Safe With La Gard 3750 Digital Electronic Lock. An example of basic home safe that can bolted to a concrete floor (Creative Commons) — Japanese exchange Liquid Global has locked customer withdrawals. (Creative Commons)

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

Follow @OKnightCrypto on Twitter

Sheldon Reback

Sheldon Reback is a CoinDesk news editor based in London. He owns a small amount of ether.

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Liquid Global, which was bought by crypto exchange FTX earlier this year, said it is halting all withdrawals after FTX filed for Chapter 11 bankruptcy in the U.S.

In a tweet on Monday evening U.S. time, the company said that customers wouldn't be able to take out either fiat or cryptocurrency and that it will provide further updates "when available."

FTX, which had extended Liquid a $120 million loan in the wake of a $90 million hack in 2021 before agreeing to buy the exchange outright, didn't disclose how it much paid to purchase Liquid.

Liquid is operated by Quoine, which is another entity that was named in FTX's bankruptcy filing last week. Quoine has applied to register with the Monetary Authority of Singapore, but the regulator said this week it will take the FTX developments into account.

Liquid's native token, QASH, is down by over 25% following the exchange's decision to halt withdrawals.

CORRECTION (Nov. 15, 13:19 UTC): Corrects to say FTX bought the exchange; an earlier version said it had bailed it out following the 2021 hack.

UPDATE (Nov. 15, 14:24 UTC): Adds context throughout.

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