Sunday, November 27, 2022
HomeCryptoTwo more cryptocurrency platforms pause payouts as liquid global and salt lending...

Two more cryptocurrency platforms pause payouts as liquid global and salt lending recognize exposure to FTX

On the same day, customers operating the Salt crypto platform were also notified that Salt has paused withdrawals and deposits. Additionally, crypto lender Blockfi is reportedly filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago, and the lender said on Monday that 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 accordance with the requirements of the voluntary Chapter 11 proceedings in the United States“, the company said. tweeted. “For now, we suggest not depositing either fiat or crypto. We will provide updates as they become available“, the exchange added.

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

Shortly after news from Liquid about withdrawals, customers using the cryptocurrency lender Salt was would have been informed that Salt has put abstinence on hold. Recipients of the letter, who shared the news on Twitter, say Salt CEO Shawn Owen wrote the memo. Salt’s communication points out that “the collapse of FTX had an impact” About the company. The company must 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 confident are factually accurate, we have paused deposits and withdrawals on the Salt platform with immediate effect“, describes 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 14th, noting that payouts are still on hold for the time being. “We determined at the end of last week that in the current environment we could no longer operate as normal“, 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,” the cryptocurrency lender said. According to a report by the Wall Street Journal (WSJ), Blockfi may be on the verge of filing for Chapter 11 bankruptcy protection, according to people familiar with the matter.

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