FTX Contagion’s Next Victim: A Japanese Exchange

FTX loaned the exchange $120 million after its warm wallets were compromised last year


Blockworks exclusive art by axel rangel


FTX-owned Japanese exchange Liquid Global will halt all withdrawals including both fiat and cryptocurrencies.

Withdrawals were suspended so that the company could be in compliance with requirements of voluntary Chapter 11 proceedings in the United States, according to a tweet by the company. 

“This is not a security related halt,” the exchange tweeted. 

Adding, “Until further notice we would suggest to not deposit either FIAT or Crypto.”

Loading Tweet..

Liquid Global had been the victim of a $97 million hack in August 2021, where the exchange revealed that its “warm” wallets had been compromised. 

Soon after the hack, Liquid Global announced in a blog post that it had received a $120 million loan from FTX.

At the time, the exchange said it was “grateful for the vote of confidence from FTX and the valuable support of its users.”

“The financing will also improve Liquid’s balance sheet and, in turn, its key regulatory metrics, which further corroborates its ongoing licensing opportunities in the key jurisdictions of Japan and Singapore,” Liquid Global added.

FTX subsequently acquired the company and Liquid Global’s parent company, Quoine, in February 2022.
Quoine was one of the first exchanges to be granted a digital asset operating license under Japan’s Payment Services Act in 2017. It is in the process of acquiring similar approval from the Monetary Authority of Singapore, and FTX’s bankruptcy filing last week will likely affect its application.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



As part of the #Breakout2024 plans, Radix has introduced Token Trek


House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January


Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do


And, weeks of a potential crypto ETF decision are no stranger to chaos


The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month


More than half of Solana transactions fail