On the same day, customers operating crypto lending platform Salt were also informed 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 Monday that the pause would continue.
Crypto-currency firms Liquid Global and Salt Lending suspend operations
Two more crypto companies have informed their customers that the firms have paused withdrawal operations following the collapse of the FTX digital currency exchange. According to the official statement Liquid Global Liquid has suspended withdrawals in crypto and fiat.
Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.
Until further notice we would suggest to not deposit either FIAT or Crypto
We will provide updates when available.
– Liquid Global Official (@Liquid_Global) November 15, 2022
“Withdrawals in fiat and crypto have been suspended on Liquid Global in compliance with the requirements of the U.S. Chapter 11 voluntary procedures“, the company said. tweeted. “Until further notice, we suggest that you do not file either fiat or crypto. We will provide updates when they become available“, the exchange added.
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 the “economic terms of the transaction had not been disclosed“.
Deposits and withdrawals on Salt Lending Platform have been paused. #Crypto #cryptocurrency #CryptoNews #FTXScandal #FTXCRASH #FTXUS #stockmarketcrash pic.twitter.com/9wKErY1NIa
– Torogi (@Khallever1) November 15, 2022
Shortly after Liquid’s news about withdrawals, customers who use the crypto-currency lender Salt were would have been informed that Salt has paused withdrawals. Recipients of the letter who shared the news on Twitter say Salt CEO Shawn Owen wrote the note. Salt’s communication notes that “FTX’s collapse has had an impact” on the company. The company needs to assess the extent of the damage and until then, withdrawals will remain on pause.
“Until we are able to determine the extent of this impact with specific details that we are confident are factually accurate, we have paused deposits and withdrawals on the Salt platform effective immediately“, the letter to Salt customers details. The news from Salt and Liquid follows the suspension of withdrawals by crypto-currency lender Blockfi on November 10, 2022.
Blockfi recently updated customers on Nov. 14 and noted that withdrawals were still on pause until further notice. “We determined late last week that in the current environment we could no longer operate as usual“, Blockfi’s blog post details. “Given that FTX and its affiliates are now in bankruptcy, 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,” the crypto-currency lender added. According to a Wall Street Journal (WSJ) article, Blockfi could be on the verge of filing for Chapter 11 bankruptcy protection, according to people familiar with the matter.