Liquid Global, which was bought by crypto exchange FTX earlier this year, said it is halting all withdrawals after FTX filed for Chapter 11 bankruptcy in the U.S.
In a tweet on Monday evening U.S. time, the company said that customers wouldn't be able to take out either fiat or cryptocurrency and that it will provide further updates "when available."
FTX, which had extended Liquid a $120 million loan in the wake of a $90 million hack in 2021 before agreeing to buy the exchange outright, didn't disclose how it much paid to purchase Liquid.
Due to the Chapter 11 filing by FTX Trading International the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchage (Quoine Pte.) is halting all withdrawals - both fiat and crypto currency.
More information will be provided as it becomes available
— Liquid Global Official (@Liquid_Global) November 15, 2022
Liquid is operated by Quoine, which is another entity that was named in FTX's bankruptcy filing last week. Quoine has applied to register with the Monetary Authority of Singapore, but the regulator said this week it will take the FTX developments into account.
Liquid's native token, QASH, is down by over 25% following the exchange's decision to halt withdrawals.
CORRECTION (Nov. 15, 13:19 UTC): Corrects to say FTX bought the exchange; an earlier version said it had bailed it out following the 2021 hack.
UPDATE (Nov. 15, 14:24 UTC): Adds context throughout.