The same day, Salt, a crypto lending platform, also announced that it had paused withdrawals and deposits. Furthermore, Blockfi, a crypto lender, is reportedly seeking Chapter 11 bankruptcy protection. Blockfi stopped withdrawals five days ago and said on Monday that the halt would continue.
According to the crypto exchange Liquid Global, withdrawals of fiat and crypto have been suspended “until further notice” on November 15, 2022. Customers of the crypto lending platform Salt, who were also informed that withdrawals and deposits have been paused, agree. Furthermore, Blockfi, a crypto lender, is reportedly filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago, and the lender said Monday that the pause would continue.
Two blockchain companies, Crypto Firms Liquid Global and Salt Lending, have suspended operations.
According to the official Liquid Global Twitter account, Liquid has suspended both crypto and fiat withdrawals. Two more crypto companies have informed their clients that withdrawal operations have been paused following the demise of the digital currency exchange FTX.
Due to voluntary Chapter 11 proceedings in the United States, Fiat and crypto withdrawals have been suspended on Liquid Global,” the company tweeted. “We would suggest not depositing either fiat or crypto until further notice. We will provide updates as soon as we are able.”
Last May, FTX Trading Ltd. acquired Liquid Group and its subsidiaries, including Quoine. Liquid said at the time that “the economic terms of the deal have not been disclosed.”
Shortly after the Liquid news about withdrawals, Salt customers who rely on Salt to borrow money were allegedly notified that withdrawals had been paused. According to those who shared the information on Twitter, Salt CEO Shawn Owen wrote the letter. Salt has disclosed that “the failure of FTX has damaged” their firm. The firm will assess the damage and withhold withdrawals until then.
According to the letter to Salt customers, Salt and Liquid have paused deposits and withdrawals on their platform immediately, “until we can determine the full extent of this impact and have confidence that the information we provide is accurate.” Blockfi paused withdrawals on Nov. 10, 2022.
Blockfi recently informed clients that withdrawals were still on hold as of November 14th. According to Blockfi’s blog post, the firm decided late last week that it could no longer operate as normal because of the current environment. We, therefore, feel that it is in the interest of all clients to maintain certain platform activities halted for now,” FTX and its associates are now bankrupt. According to WSJ, Blockfi might be in the process of seeking Chapter 11 bankruptcy protection, according to people familiar with the matter.