Two More Cryptocurrency Platforms Pause Withdrawals as Liquid Global and Salt Lending Acknowledge Exposure to FTX

On the same day, customers operating the Salt crypto lending platform were also notified that Salt has paused withdrawals and deposits. In addition, crypto lender Blockfi is reportedly filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago and the lender said on Monday the pause would continue.

Cryptocurrency firms Liquid Global and Salt Lending suspend operations

Two other crypto firms have informed their clients that the companies have paused withdrawal operations following the collapse of digital currency exchange FTX. According to the official statement Liquid Global Liquid has suspended crypto and fiat withdrawals.

Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of the voluntary Chapter 11 procedures in the United States“, said the company. tweeted. “Until further notice, we suggest not depositing either fiat or crypto. We will provide updates when they become available“, added the exchange.

Liquid Group was acquired by FTX Trading Ltd. last May, along with all of the company’s subsidiaries, including Quoine. At the time, Liquid said that the “economic terms of the transaction were not disclosed“.

Shortly after news from Liquid about withdrawals, customers who use the cryptocurrency lender Salt were would have been informed that Salt has paused withdrawals. Letter recipients who shared the news on Twitter say Salt CEO Shawn Owen wrote the note. Salt’s communication points out that “the collapse of FTX had an impact” about the company. The company needs to assess the extent of the damage and until then withdrawals will remain on hold.

Until we are able to determine the extent of this impact with specific details that we are sure are factually accurate, we have paused deposits and withdrawals on the Salt platform with effect immediate“, details the letter to Salt’s customers. The news from Salt and Liquid follows the suspension of withdrawals by cryptocurrency lender Blockfi on November 10, 2022.

Blockfi recently updated customers on November 14 and noted that withdrawals are still on hiatus until further notice. “We determined late last week that, in the current environment, we could no longer operate as usual“, Details Blockfi’s blog post. “Given that FTX and its affiliates are now bankrupt, the most prudent decision for us, in the interest of all customers, is to continue to pause many of our platform activities for the time being,” said added the cryptocurrency lender. According to a Wall Street Journal (WSJ) report, Blockfi may be on the verge of filing for Chapter 11 bankruptcy protection, according to people familiar with the matter.

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