“We have been instructed by S&C, who act for FTX Trading, to pause all forms of trading on our exchange because of the operation of the Chapter 11 process in the Delaware Courts”, the exchange announced on Twitter on Nov 20. The company on Nov 15 suspended fiat and crypto withdrawals on its Liquid Global platform.
FTX Trading has acquired Liquid Group and all its subsidiaries since February. Some sources say FTX Trading had a total of $9.6 billion of assets, but it is unclear how much of that value could be realized. Liquid is the parent company of Quoine Corp., one of the first crypto trading platforms licensed in Japan in 2017.
Before the acquisition, FTX lent Liquid $120 million in the wake of a $90 million hack in 2021. FTX, meanwhile, filed for Chapter 11 bankruptcy on Nov 11. According to the latest announcement, FTX owes its 50 biggest creditors nearly $3.1 billion.
“Our priority in the coming weeks is to explore sales, recapitalizations or other strategic transactions with respect to these subsidiaries, and others that we identify as our work continues”, said John J. Ray III, who was appointed as the CEO of FTX after its founder Sam Bankman-Fried resigned from the company and filed for bankruptcy.
On Nov 10, Japan’s Financial Services Agency had ordered the local arm of Sam Bankman-Fried’s crypto exchange to halt operations until December following a withdrawal halt. FTX Japan was a part of FTX Trading’s acquisition of Liquid Group.
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