FTX-owned Liquid exchange stops all trading

Cryptocurrency firms rush to acquire FTX’s assets

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The trading platform Liquid, owned by the collapsed cryptocurrency exchange FTX, has announced that it has suspended all trading operations.

Liquidy, which halted all deposits last week, said it had been instructed by FTX Trading’s law firm, Sullivan and Cromwell, to pause all forms of trading so as to adhere with FTX’s Chapter 11 bankruptcy process currently under way in the US state of Delaware. 

It said: “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.”

FTX began November as one of the largest cryptocurrency exchanges in the world. Its CEO and founder, Sam Bankman-Fried began the month as one of the world’s richest people, with a net worth of more than  $16bn. 

Bankman-Fried, 30, had overseen the firm’s rapid global expansion and made a habit throughout 2022 of acquiring distressed cryptocurrency firms such as the bankrupt crypto lender Voyager Digital.

FTX purchased Liquid Group and all of its operating subsidiaries, including the Japanese Quoine Corporation and the Singapore-based Quoine Pte, in March for an undisclosed fee. The acquisition was seen as a coup for FTX as Quoine’s Liquid exchange was among the first exchanges to be granted a full licence by Japan’s Financial Services Agency. 

FTX rivals prepare to buy up firm’s assets

Prominent cryptocurrency firms have started to queue up to acquire FTX’s assets in the wake of its collapse. Binance is reportedly preparing an offer for Voyager Digital.

LedgerX, a firm acquired by FTX US in late 2021, is reportedly looking to fully disentangle itself after a strategic review found that it was exempted as a debtor in FTX’s bankruptcy filing. 

The review, which was undertaken by the financial services company Perella Weinberg, found that several regulated or licenced subsidiaries of FTX are safe because they have “solvent balance sheets, responsible management and valuable franchises”.

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