Liquid has suspended all trading operations on its platform in accordance with instructions from FTX Trading, the firm announcement on Twitter on November 20. The statement said Liquid Exchange suspended “all forms of trading” due to the operation of the Chapter 11 process in the Delaware courts.
“We have since done so while we assess the situation. We are working on these issues and will endeavor to provide a more comprehensive update in due course,” Liquid added.
Liquid’s operational shutdown comes five days after the swap suspended all withdrawals on its platform, citing compliance with the requirements of Chapter 11 Voluntary Procedures. Financial Services Agency of Japan previously also requested another local FTX subsidiary, FTX Japan, will suspend trade orders on November 10.
As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that has encountered problems due to the ongoing bankruptcy proceedings of its parent company. Bankrupt crypto lender Voyager Digital tried to find another buyer after FTX US acquired its assets in September. Crypto exchange CrossTower worked on a revised bid for Voyager’s assets as the company reopens the bidding process, Cointelegraph reported on November 13.
Other FTX subsidiaries, including LedgerX – which does business as FTX US Derivatives – have been actively working to spin off from FTX. According to a strategic review of FTX’s global assets, LedgerX was exonerated as a debtor in FTX’s bankruptcy filing. According to a study by financial services firm Perella Weinberg, many regulated or licensed subsidiaries of FTX have “solvent balance sheets, responsible management and valuable franchises.”
Perella Weinberg found that certain FTX subsidiaries – including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE and Zubr Exchange – are debtors.
Japanese Cryptocurrency Exchange Liquid Halts All Transactions Due To FTX Repository for Chapter 11 bankruptcy protection in the United States.