2 More Crypto Platforms Halt Liquid Global and Salt Credit Withdrawals After Revealing FTX Exposure – Bitcoin News

On November 15, 2022, cryptocurrency exchange Liquid Global announced that it was suspending fiat and cryptocurrency withdrawals “until further notice.” On the same day, customers using the cryptocurrency platform Salt were informed that Salt had stopped withdrawing and depositing funds. Additionally, cryptocurrency lender Blockfi is reportedly in the process of filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago, and the lender said Monday that the pause would continue.

Crypto Firms Liquid Global and Salt Credit Break Transactions

Two more crypto firms have informed their clients that the firms have suspended withdrawals following the collapse of digital currency exchange FTX. According to the officer Liquid Global Twitter account, Liquid has stopped withdrawing both cryptocurrency and fiat.

“Fiat and cryptocurrency withdrawals have been suspended at Liquid Global pursuant to voluntary Chapter 11 proceedings in the United States” – the company he tweeted. “Until further notice, we suggest not investing in either fiat or cryptocurrency. We will provide updates when possible,” the exchange added.

Liquid Group last May FTX Trading Ltd. and acquired by all of the company’s subsidiaries, including Quoine. At the time, Liquid said “the economic terms of the deal were not disclosed.”

Not long after Liquid’s news of withdrawals, customers have been using the crypto lender Salt was reported that Salt has stopped pulling. Recipients of the letter, who shared the news on Twitter, noted that Salt CEO Shawn Owen wrote the note. Salt’s statement emphasizes that “the collapse of FTX affected the business”. The firm has to assess the extent of the damage and until then the withdrawal will be suspended.

“Until we can determine the extent of this impact in specific details that we are confident are factually accurate, we have immediately suspended deposits and withdrawals on the Salt platform,” the letter to Salt customers detailed. The news from Salt and Liquid follows the November 10, 2022 withdrawal of cryptocurrency lender Blockfi.

Blockfi recently updated customers on November 14, noting that the withdrawal is still suspended until further notice. “Late last week, we determined that we could no longer conduct business as usual under the current circumstances,” Blockfi’s blog post details. “Given that FTX and its affiliates are currently in bankruptcy, the most prudent decision for us in the best interest of all customers is to continue to suspend our multi-platform operations 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.

Tags in this story

Bankruptcy, Blockfi, Contagion, Crypto Lender, Deposits, Exposure, ftx, FTX Collapse, FTX Exchange, Halt Transactions, Liquid, Liquid Global, Liquid Salt, Halt Transactions, Halt Withdrawals, Salt, Salt Loan, Salt Liquid, Withdrawal Halt

What do you think about the cessation of Fluid and Salt removal when exposed to FTX? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at Bitcoin.com News and a fintech journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.

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