Liquid halts trading on Japanese bitcoin exchange

The Japanese bitcoin exchange Liquid, owned by FTX, halted trading operations five days after withdrawals were paused.

We have since done so while we assess the situation. We are working through these issues and will endeavour to give a fuller update in due course.

— Liquid Global Official (@Liquid_Global) November 20, 2022

The statement said that S&C, acting on behalf of FTX Trading [law firm], instructed us to halt all trading on the exchange due to Chapter 11 proceedings in the Delaware court.

The team behind the platform said they were assessing the situation and promised to provide a fuller update later.

On November 16, Liquid stopped withdrawals after FTX Group filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.

In February, FTX acquired the Japanese cryptocurrency exchange and related entities. In the summer, Sam Bankman-Fried’s company announced the launch of a local subsidiary, rebranding Liquid as FTX Japan K.K.

In November, the Financial Services Agency of Japan ordered the platform to suspend operations and switch to close-only mode.

As noted, the new CEO of FTX, John Ray, blamed the former leadership of the crypto exchange for providing preferential treatment to Alameda Research affiliated with Bankman-Fried.

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