On November 15, 2022, cryptocurrency exchange Liquid Global announced that it had suspended fiat and crypto withdrawals “until further notice.” On the same day, customers using the Salt crypto lending platform were also informed that Salt had suspended withdrawals and deposits. In addition, crypto lender Blockfi is reportedly in the process of filing for Chapter 11 bankruptcy protection. Blockfi suspended withdrawals five days ago, and the lender said on Monday that the pause would continue.
Crypto Firms Liquid Global and Salt Lending Suspend Operations
Two more crypto firms have informed their clients that the firms have suspended withdrawal operations following the collapse of digital currency exchange FTX. According to the official Liquid Global The Liquid Twitter account has suspended withdrawals in both crypto and fiat.
“Fiat and cryptocurrency withdrawals have been suspended on Liquid Global in accordance with the requirements of a voluntary Chapter 11 hearing in the United States,” the company said in a statement. tweeted. “Until further notice, we recommend not to deposit either fiat or crypto funds. We will provide updates as they become available,” the exchanges added.
Liquid Group was acquired by FTX Trading Ltd. last May, as well as all of the company’s subsidiaries, including Quoine. Liquid said at the time that “the economic terms of the deal were not disclosed.”
Shortly after the Liquid withdrawal news, customers using a crypto lender Salt we reportedly informed that Sol has suspended withdrawals. Recipients of the letter who shared the news on Twitter say the note was written by Salt CEO Sean Owen. Salt’s disclosure highlights that “the collapse of FTX has affected” the business. The firm must assess the extent of the damage, and until then, withdrawals will be suspended.
“Until we are able to determine the extent of this impact with specific details that we believe are factually accurate, we have immediately suspended deposits and withdrawals on the Salt platform,” Salt customers said in a letter. The Salt and Liquid news follows crypto lender Blockfi suspending withdrawals on November 10, 2022.
Blockfi recently updated their customer details on November 14 and noted that withdrawals are still on hold until further notice. “Late last week, we determined that under the current circumstances, we can no longer conduct our business as usual,” Blockfi said in a blog post. “Given that FTX and its subsidiaries are currently in bankruptcy, the most prudent course of action for us, in the best interest of all clients, would be to continue to suspend many activities on our platform for the time being,” the crypto lender added. According to a Wall Street Journal (WSJ) report, Blockfi may be in the process of filing for Chapter 11 bankruptcy protection, according to people familiar with the matter.
What do you think about Liquid and Salt putting withdrawals on hold due to the impact on FTX? Let us know what you think about it in the comments section below.
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