FTX Lends Liquid Global $120 Million Following Hack

“We always look to work closely with our customers and regulators to address their security-related concerns,” Sam Bankman-Fried, CEO of FTX told Blockworks. “Our first priority is the users, and the same is true of Liquid.”

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Earlier this month, Liquid Global revealed that its warm wallets, which sit between cold and hot storage, had been compromised
  • Liquid Global announced the close of the debt financing in a blog post on Thursday

In the wake of its estimated $97 million hack, cryptocurrency exchange Liquid Global has received a $120 million loan from fellow exchange FTX. 

“We always look to work closely with our customers and regulators to address their security-related concerns,” Sam Bankman-Fried, CEO of FTX told Blockworks. “Our first priority is the users, and the same is true of Liquid.”

Liquid Global announced the close of the debt financing in a blog post on Thursday.  

“The new funds come at an important point in Liquid’s development and will strengthen its capital position,” the company wrote. “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.”

Japan-based Liquid Global announced the hack via Twitter earlier this month. The exchange revealed that its warm wallets, which sit between cold and hot storage, had been compromised. 

The advantage of the hybrid warm wallet is added security, in theory, plus the ability to make transactions, which cold wallets do not support. Liquid Global said that it moved other assets into cold wallets for added protection following the hack.  

The hack highlighted the need for greater security in the cryptocurrency space, which regulators across the world have pushed for recently. 

“Security and regulation have always been central to our operations as an exchange,” said Bankman-Fried. “As regulators get more active and the space continues to grow, there are more opportunities to become licensed, and we fully expect the security of user funds to be a key consideration in order to secure those licenses.” 

Liquid Global parent company Quoine became one of the first exchanges to be granted a digital asset operating license under Japan’s Payment Services Act in 2017. In 2021, the exchange applied for the Major Payment Institution licence under the Singapore Payment Services Act for the provision of digital payment token services, according to the company’s website

“Helping the wider crypto community and a fellow team of like-minded builders was the key benefit for us,” said Bankman-Fried. “We look forward to Liquid continuing to lead the way in crypto regulation and emerging from this stronger than before.” 

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion

article-image

Bitget’s L2 is undergoing a leadership change and will be helmed by Colin Goltra, formerly the blockchain’s chief growth officer

article-image

The funding was spread out across 61 rounds, a slight dip in both number of rounds and total funding in comparison to other months

article-image

Why is it controversial to say things are better than they used to be?