2 More Crypto Platforms Pause Withdrawals as Liquid Global and Salt Lending Cite Exposure to FTX
On Nov. 15, 2022, the crypto exchange Liquid Global revealed that it has suspended fiat and crypto withdrawals “until further notice.” The same day, customers leveraging the crypto lending platform Salt were also informed that Salt has paused withdrawals and deposits. Furthermore, the crypto lender Blockfi is reportedly in the process of filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago and the lender said on Monday that the pause would continue.
Crypto Firms Liquid Global and Salt Lending Pause Operations
Two more crypto companies have informed their clients that the firms have paused withdrawal operations following the collapse of the digital currency exchange FTX. According to the official Liquid Global Twitter account, Liquid has suspended both crypto and fiat withdrawals.
“Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States,” the company tweeted. “Until further notice, we would suggest to not deposit either fiat or crypto. We will provide updates when available,” the exchange added.
Liquid Group was acquired by FTX Trading Ltd. last May plus all of the company’s subsidiaries including Quoine. At the time, Liquid said the “economic terms of the deal have not been disclosed.”
Not too long after the Liquid news concerning withdrawals, customers using the crypto lender Salt were reportedly informed that Salt has paused withdrawals. Letter recipients who shared the news on Twitter say Salt’s CEO Shawn Owen wrote the note. Salt’s disclosure highlights that “the collapse of FTX has impacted” the business. The firm needs to assess the extent of the damage and until then, withdrawals will remain paused.
“Until we are able to determine the extent of this impact with specific details that we feel confident are factually accurate, we have paused deposits and withdrawals on the Salt platform effective immediately,” the letter to Salt customers details. The Salt and Liquid news follow the crypto lender Blockfi pausing withdrawals on Nov. 10, 2022.
Blockfi recently updated customers on Nov. 14 and noted that withdrawals were still paused until further notice. “We determined late last week that in the current environment we could no longer operate our business as usual,” Blockfi’s blog post details. “Given that FTX and its affiliates are now in bankruptcy, the most prudent decision for us, in the interest of all clients, is to continue to pause many of our platform activities for now,” 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 pausing withdrawals over exposure to FTX? Let us know what you think about this subject in the comments section below.