Liquid Exchange Halts Withdrawals: What You Need to Know in a Crypto Crisis

The Latest in Crypto Drama

In a move that has left many scratching their heads (and wallets), Liquid, a Japanese cryptocurrency exchange, announced on November 15 that it would be halting all fiat and crypto withdrawals. This decision came amid a turbulent time for centralized crypto exchanges, with headlines reading like a plot twist in a soap opera.

The Reason Behind the Suspension

According to their official Twitter account, Liquid cited the need to comply with voluntary Chapter 11 proceedings in the United States. Their statement pointed out that the suspension was direct fallout from the FTX Trading International filing—yes, the same FTX that had everyone nervously biting their nails. Liquid made it clear that they were not halting withdrawals due to security concerns. Instead, they were merely ensuring compliance with legal requirements.

“Due to the Chapter 11 filing by FTX Trading International, the ultimate beneficial owner of Quoine Pte. Ltd, Liquid Exchange is halting all withdrawals.”

What’s the Impact on Users?

For users wishing to withdraw their assets, this news is less than ideal. Liquid strongly advised against making any deposits—either fiat or crypto—until they provide additional updates. So, if you were planning on cashing out your crypto gains, now might not be the best time.

What to Do Next?

If you are a Liquid user, consider the following:

• Monitor Liquid’s social media for updates. They promise to keep users informed, so keep an eye on their Twitter page.
• Do not deposit any funds until they have clarified the situation—potentially saving you from a cash flow hiccup.
• Stay calm. Reach out to customer support for any urgent queries, though response times may vary.

Liquid’s Previous Stance

Just a few days earlier, Liquid claimed that all customer assets stored in their wallets were safe and sound. “We have conducted initial checks and see no unusual activity,” they tweeted on November 12. However, that confidence quickly evaporated as the shadow of FTX loomed over them, resulting in the abrupt suspension of crypto withdrawals shortly after.

The Bigger Picture

Liquid was founded in 2014 and has since become a prominent name in the crypto scene, operating under Japan’s Payment Services Act through its subsidiary, Quoine Corporation. Back in February 2022, Liquid was acquired by FTX, a move that now seems like a decade ago given the current climate.

Conclusion: A Cautionary Tale

As the crypto market sees yet another shake-up, it serves as a reminder to always do your homework before trusting any exchange with your hard-earned cash. Keep your emergency exit plans in check, because in the wild world of cryptocurrencies, it’s better to be safe than sorry!