Liquid crypto exchange stops processing all withdrawals
by James Atkins | Nov 17, 2022 | Bitcoin | 0 comments
Liquid is an FTX-owned crypto exchange based in Japan and which Sam Bankman-Fried acquired in February this year.
The cryptocurrency exchange Liquid, which was taken over by FTX in February this year, has stopped all customer withdrawals and deposits.
On Twitter Tuesday, the exchange announced that due to ongoing Chapter 11 bankruptcy proceedings involving FTX. And approximately 130 of its affiliate companies, all crypto and fiat withdrawals have been placed on hold.
After a little while, the exchange posted an update telling users not to put their crypto or regular money onto the platform.
"We are suspending both Fiat and Crypto withdrawals on Liquid Global due to the demands of voluntary Chapter 11 procedures in America. Until further notice, we advise against depositing either FIAT or Crypto. We will give updates when possible." Liquid Global tweets on 15 November.
The Liquid Global team announced that the Chapter eleven filing by FTX has implications for Quoine Pte. Ltd. The company that ran the now-defunct Liquid Exchange. They clarified that the withdrawal freeze is not due to any security issues.
Liquid temporarily stopped people from taking out money in both fiat and crypto on 12 November. This was after FTX surprised the crypto world with a Chapter 11 filing. The suspension also came after FTX announced that it had been hacked and that millions of dollars in crypto assets were stolen.
Following FTX's insolvency, the Japanese exchange resumed crypto withdrawal services after conducting "thorough security checks of internal systems." The platform also confirmed that customer funds were not impacted.
Effects on the user community
Many Liquid users have been left feeling frustrated and confused by the crypto exchange's decision to halt withdrawals.
Some have expressed concern that Liquid may be experiencing liquidity issues. While others are concerned that there may be something more nefarious going on behind the scenes.
Despite Liquid's assurances that withdrawals will resume soon, many users remain skeptical about its ability to keep their funds safe and secure.
Given that Liquid is a relatively new platform. Many users are worried about the potential risks involved with storing their funds on an untested exchange. Nevertheless, many Liquid users remain committed to the platform, hoping that these issues will be resolved shortly.
Effects on the crypto space
The Liquid crypto exchange outage has sparked concerns about the stability of crypto exchanges in general. Particularly as the crypto market continues to see significant price fluctuations.
Some are worried that this could be a sign that we are entering another bear market, while others remain cautiously optimistic. Pointing out that Liquid is just one example and there may be other factors contributing to its current struggles.
Regardless of what the future holds for Liquid and other crypto exchanges. The industry will need to continue working to build trust with users and gain legitimacy to thrive going forward.
About Liquid
Liquid is a popular cryptocurrency exchange, that has gained widespread attention in recent weeks due to the sudden halt of all withdrawals. Many are concerned about Liquid's stability given the volatile state of the crypto market, with prices fluctuating wildly daily.
While some believe that Liquid's struggles could be an early sign of another bear market. Others remain cautiously optimistic, pointing out that Liquid is just one example and there may be other factors contributing to its current difficulties.
Regardless of what the future holds for Liquid and other crypto exchanges. This market is still in a period of transition and investors will need to remain vigilant and informed if they hope to thrive.
Do you think Liquid can pull through this? Do you share your thoughts with us in the comment section!
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