FTX bankruptcy affects brokers

Yet another global cryptocurrency exchange has notified its clients of a withdrawal crash. In the new case, it is worth mentioning that the operation was authorized to operate in Japan, a fact that draws a lot of attention.

The announcement was made to the platform’s customers this Tuesday (11/15), another affected by the collapse of FTX. It is not yet clear how many companies will enter the “black hole” created by FTX. With this bankruptcy filing, it is possible that more than 200 cryptocurrency companies will also go out of business.

FTX has come to an end and customers are better adapting to the chaotic situation. In recent months, the brokerage created by Sam Bankman-Fried has been one of the largest in terms of volume in the world.

Due to the rapid growth, many companies received funding from FTX. However, its current insolvency spreads to other platforms, “lost sheep without their shepherd”, as some put it.

The new bankruptcy announcer is Liquid Global

The new bankrupt announcer is Liquid Global, a platform that published on Twitter this Tuesday that withdrawals were suspended. “Due to the filing of Chapter 11 by FTX Trading International, the ultimate beneficiary of Quoine Pte. Ltd, Liquid Exchage (Quoine Pte.) is stopping all withdrawals – in fiat currency and cryptocurrencies. More information will be provided as it becomes available.”

In a note, the platform warned customers that it did not suspend operations due to hacker attacks. That is, its end is linked to the collapse of its main investor, FTX. Last Saturday (11/12), Liquid Global suspended customer withdrawals for a few hours. FTX would have been hacked that day and partner platforms would have been affected by the incident. After an investigation, Liquid Global returned the statements and stated that it had not lost any money.

However, it is certain that the situation has deteriorated

However, it is true that the situation worsened again this Tuesday, when customer withdrawals were blocked without a defined period for them to be released again, as a security measure. After the announcement of Liquid Global, the brokerage became the target of jokes among clients that it is now called “Iliquid”, that is, illiquid.

In recent months, the constant increase in platform crashes has caused panic among investors in the financial market. That’s because without support and mass terminations, platforms disappear with customer coins, which remain unanswered. In conclusion, the distrust of platforms forces customers to withdraw their cryptocurrencies from exchanges to protect in their wallets, under the self-control of investors.

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