The platform, which temporarily halted withdrawals a week ago, explained in a tweet that the decision was made in response to recent events surrounding FTX, an exchange whose shocking failure has the potential to deal an irreparable blow to the entire cryptocurrency industry.

All trading is halted on the liquid exchange.
The halt in trading was in response to a directive from the legal team representing FTX, as stated in the announcement made by Liquid Global.

On Sunday, November 20, the Liquid team shared the following message with customers:

Because the Chapter 11 process is currently being carried out in the Delaware Courts, "We have been instructed by SC, who act for FTX Trading, to pause all forms of trading on our exchange,"

Trading has been halted on the crypto exchange based in Japan as part of FTX's ongoing process of reviewing its assets, which are dispersed across multiple subsidiaries located in various parts of the world. This is one of the steps that will be taken in the process.

In a press release issued on Saturday, prominent restructuring attorney and newly appointed CEO of FTX John J. Ray III said the following:

"Based on our review over the past week, we are pleased to learn that a significant number of regulated or licensed subsidiaries of FTX, both within and outside of the United States, have solvent balance sheets, responsible management, and valuable franchises,"

According to Ray, certain FTX subsidiaries, such as LedgerX and Embed Clearing, were not considered debtors in the ongoing Chapter 11 proceedings. However, other FTX subsidiaries, such as FTX Japan and Quoine Pte., were considered debtors.

Ray also mentioned that the following weeks could see a lot of activity in relation to the subsidiaries, with actions such as sales and recapitalizations expected to be expected to take place.