Crypto exchange Liquid, owned by bankrupt FTX, Stop The exchange announced on Twitter “all forms of trading” on Sunday. The Japanese exchange said it is pausing trading activity at the request of FTX Trading, which is moving forward with a Chapter 11 bankruptcy process in the Delaware courts.
“We have since done so while we assess the situation. We are working through these issues and will endeavor to give a fuller update in due course”, Liquid said in a statement.
Liquid’s halt to trading activity comes nearly a week after the exchange suspended cryptocurrency and fiat withdrawals. Before pausing withdrawals, Liquid said it was not affected by the blowout from FTX, which bought the exchange in February 2022 for an undisclosed amount.
FTX Japan, another subsidiary of FTX, suspended operations on November 10. This followed a request from Japan’s Financial Services Agency.
Liquid joins several other FTX Group companies struggling in the wake of the fall of Sam Bankman-Fried’s crypto empire. Voyager Digital, a bankrupt cryptocurrency lender whose assets FTX bought, is looking for another potential buyer. Binance is rumored to be a prime candidate.
Ren Protocol, a cross-chain bridge owned by Alameda Research, has announced plans to find new funding to transition from Alameda, which is part of more than 130 affiliates of bankrupt FTX Group.
FTX declared bankruptcy on November 11th. This followed a series of revelations about its unsustainable and potentially criminal business practices. The defunct exchange allegedly sent billions of dollars in customer funds to Alameda, its cryptocurrency trading firm, which lost everything. Other charges include using unauthorized systems that insiders profited from, money laundering, siphoning off clients and projects money, among others.
Liquid is one of the most recent crypto companies to announce its exposure to FTX. The problems with the Japanese stock exchange show the long reach of FTX in the broader crypto industry.