Troubled Japanese cryptocurrency exchange Liquid has terminated withdrawals, citing FTX's filing for Chapter 11 bankruptcy protection in the US as the reason behind the move.
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The exchange said in a tweet announcement, that users can no longer withdraw not only cryptocurrencies, but also fiat currency. Liquid added that the decision to suspend withdrawals had nothing to do with the platform's security. The trading platform promised to provide further updates "when available," without clarifying the timeframe.
In August 2021, Liquid attracted $120 million from FTX as debt financing after the platform had suffered a hacker attack, losing over $90 million in cryptocurrencies. The exchange said it would use the proceeds to "strengthen its capital position." A few months later, FTX acquired Liquid for an undisclosed price.
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