The Japanese cryptocurrency exchange Liquid is halting all trading due to FTX filing for Chapter 11 bankruptcy protection in the United States.
Liquid has suspended all trading operations on its platform in line with instructions from FTX Trading, the firm announced on Twitter on Nov. 20. The statement indicates that Liquid exchange paused “all forms of trading” because of the operation of the Chapter 11 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 added.
Liquid’s operational halt comes five days after the exchange suspended all withdrawals on its platform, citing compliance with the requirements of voluntary Chapter 11 proceedings. Japan’s Financial Services Agency previously also requested another FTX’s local subsidiary, FTX Japan, to suspend business orders on Nov. 10.
As previously reported by Cointelegraph, Liquid is not the only FTX subsidiary that faced issues due to the ongoing bankruptcy proceedings of its parent firm. Bankrupt crypto lender Voyager Digital has been trying to find another buyer after FTX US acquired its assets in September. Crypto exchange CrossTower has been working on a revised offer for Voyager’s assets as the firm has reopened the bidding process, Cointelegraph reported on Nov. 13.
Other FTX subsidiaries, including LedgerX — which does business as FTX US Derivatives — have been actively working to spin out from FTX. According to a strategic review of FTX’s global assets, LedgerX was exempted as a debtor in FTX’s bankruptcy filing. According to a review by the 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 some FTX’s subsidiaries — including FTX Japan, Quoine, FTX Turkey Teknoloji Ve Ticaret, FTX EU, FTX Exchange FZE and Zubr Exchange — are debtors.