Liquid Global and Salt Lending Halt Withdrawals After FTX Collapse

Two more crypto platforms have suspended operations after the collapse of crypto exchange FTX.

On Tuesday, FTX-owned crypto exchange Liquid Global said it had suspended fiat and crypto withdrawals on the platform in compliance with FTX’s bankruptcy proceedings in the U.S.

FTX acquired the Japanese exchange earlier this year on undisclosed terms. The exchange had previously received a $120 million loan from FTX after suffering from a $90 million cyberattack in August 2021.

Later that day, another exchange, Salt Lending, informed its users that it would halt their withdrawals and platform activity in connection with the implosion of FTX. The six-year old firm, which offers crypto-backed loans, said that FTX’s collapse had impacted its business. 

“Until we are able to determine the extent of this impact with specific details that we feel confident are factually accurate, we have paused deposits and withdrawals on the SALT platform effective immediately,” said Salt Lending in a statement. 

Salt Lending was set to be acquired by investment platform Bnk To The Future later this year, but the firm has now terminated its non-binding letter of intent, citing Salt’s position with FTX. 

Meanwhile, a Tuesday report from the Wall Street Journal suggested that BlockFi could be filing for bankruptcy because of its exposure to FTX. BlockFi was one of the market’s largest crypto lenders until it halted withdrawals last week due to a “lack of clarity” around FTX and its related entities.

On Monday, the lender denied rumors that a majority of its assets were custodied on FTX but said it “significant exposure” to the now-defunct crypto exchange.