After FTX announced the decision to opt for chapter 11 bankruptcy, a top-tier crypto exchange announced it halted withdrawals and deposits. The meltdown of Sam Bankman-Fried-related crypto companies has already had a negative ripple on various entities in the ecosystem.
Binance CEO CZ had earlier warned that the crypto market stares at cascading effects following the implosion of Crypton exchange FTX. In the last two weeks, several associated cryptocurrencies like FTX Token (FTT) and Solana (SOL) lost significant value.
One of Japan’s top crypto exchanges, Liquid, on Monday said it was halting deposits and withdrawals due to FTX’s bankruptcy-related issues. Liquid and its associated subsidiaries were acquired by FTX in February 2022.
Earlier, it announced the suspension of fiat and crypto withdrawals. It cited the requirements of voluntary chapter 11 proceedings in the United States for the suspension.
The bankruptcy process of FTX Group involved FTX and Alameda Research, along with several other companies. The company said it wants to review and monetize assets to benefit stakeholders. The announcement also marked the stepping down of Sam Bankman Fried from the role of chief executive officer. The troubled company announced John J. Ray III as the new FTX CEO.