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2 More Crypto Platforms Pause Withdrawals As Liquid Global And Salt Lending Cite Exposure To FTX

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2 More Crypto Platforms Pause Withdrawals As Liquid Global And Salt Lending Cite Exposure To FTX

On Nov. 15, 2022, the crypto exchange Liquid Global revealed that it has suspended fiat and crypto withdrawals “until further notice.” The same day, customers leveraging the crypto lending platform Salt were also informed that Salt has paused withdrawals and deposits. Furthermore, the crypto lender Blockfi is reportedly in the process of filing for Chapter 11 bankruptcy protection. Blockfi halted withdrawals five days ago and the lender said on Monday that the pause would continue.

Crypto Firms Liquid Global and Salt Lending Pause Operations

Two more crypto companies have informed their clients that the firms have paused withdrawal operations following the collapse of the digital currency exchange FTX. According to the official Liquid Global Twitter account, Liquid has suspended both crypto and fiat withdrawals.

“Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States,” the company tweeted. “Until further notice, we would suggest to not deposit either fiat or crypto. We will provide updates when available,” the exchange added.

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Liquid Group was acquired by FTX Trading Ltd. last May plus all of the company’s subsidiaries including Quoine. At the time, Liquid said the “economic terms of the deal have not been disclosed.”

Not too long after the Liquid news concerning withdrawals, customers using the crypto lender Salt were reportedly informed that Salt has paused withdrawals. Letter recipients who shared the news on Twitter say Salt’s CEO Shawn Owen wrote the note. Salt’s disclosure highlights that “the collapse of FTX has impacted” the business. The firm needs to assess the extent of the damage and until then, withdrawals will remain paused.

“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,” the letter to Salt customers details. The Salt and Liquid news follow the crypto lender Blockfi pausing withdrawals on Nov. 10, 2022.

Blockfi recently updated customers on Nov. 14 and noted that withdrawals were still paused until further notice. “We determined late last week that in the current environment we could no longer operate our business 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 clients, is to continue to pause many of our platform activities for now,” the crypto lender added. According to a Wall Street Journal (WSJ) report, Blockfi may be in the process of filing for Chapter 11 bankruptcy protection, according to people familiar with the matter.

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Bankruptcy, Blockfi, contagion, Crypto lender, deposits, Exposure, ftx, FTX collapse, FTX Exchange, halting operations, Liquid, Liquid Global, Liquid Salt, pausing operations, pausing withdrawals, Salt, Salt Lending, Salt Liquid, Withdrawal Pause, Withdrawals

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What do you think about Liquid and Salt pausing withdrawals over exposure to FTX? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Insights on Sam Bankman-Fried’s ‘dark’ Republican political donations

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Insights on Sam Bankman-Fried’s ‘dark’ Republican political donations

Insights on Sam Bankman-Fried’s ‘dark’ Republican political donations Samuel Wan · 40 mins ago · 2 min read

YouTuber Coffeezilla gives his take on a Tiffany Fong interview with Sam Bankman-Fried, in which he claimed to be a secret Republican donor.

2 min read

Updated: November 30, 2022 at 2:09 pm

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Cover art/illustration via CryptoSlate

Former FTX CEO Sam Bankman-Fried (SBF) gave his first interview with “citizen journalist” Tiffany Fong post-collapse.

The pair discussed multiple aspects of the FTX saga, including the “backdoor,” FTT as collateral, and his regrets. But of particular interest were SBF’s comments on dark money donations made to Republican politicians.

It is widely known SBF was a significant supporter of the Democrat administration. His $37 million donations made him the party’s second-biggest donor, after investor George Soros.

Some speculate this link is a factor in the lack of criminal proceedings against him. For example, lawyer John E. Deaton questioned why authorities have failed to respond, calling the criminal justice system “compromised.”

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Let me make this clear if SBF isn’t arrested and charged with fraud, wire-fraud, theft, and possibly money laundering before and instead gets to spew out his bullshit narrative, our system of justice has been compromised. @ewarren you claim to be for the little guy, where are you https://t.co/cdmOa7U0an

— John E Deaton (@JohnEDeaton1) November 23, 2022

However, based on Fong’s interview, it seems SBF has more political clout than first thought.

Sam Bankman-Fried played both sides

In recent months, Fong’s investigations into Celsius, and now FTX, have earned her a reputation for sound investigative journalism.

During the 20-minute interview, the issue of political donations cropped up, with SBF saying he donated “about the same amount” of money to both parties. Further, donations to the Republican party were “dark.”

“I donated to both parties, I donated about the same amount to both parties… All my Republican donations were dark.”

Explaining why he chose this route, SBF said it was not for regulatory reasons. Rather, it was to quell the potential backlash from left-biased news outlets.

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“It’s because reporters freak the f*ck out if you donate to Republican. They’re all secretly liberal and [I] didn’t want to have that fight, so I made all the Republican ones dark.”

Coffeezilla speaks

Chiming in on the disclosure, YouTuber Coffeezilla aka Stephen Findeisen, said there was a lot to unpack with SBF’s comments.

Firstly, referring to SBF’s now infamous tweet in which he said “FTX is fine,” Coffezilla said he is skeptical about whether the former CEO is telling the truth. Nonetheless, whether he is lying or not, it is a lose-lose situation for SBF.

Sharing his insights, Coffeezilla said it goes to show that SBF has no political agenda, only that he wanted to be powerful and to be seen to care, “that’s why he played both sides.”

“If he’s lying, this looks bad for him. But if he’s telling the truth it looks worse. It shows you how cynical Sam was. He never cared about politics. He cared about power and perception”

Coffeezilla continued by saying this mindset is about “trying to craft an image.” With the generous billionaire image in tatters, SBF is now trying to deflect the criminal narrative into one of “the smart guy who made an embarrassing mistake.”

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Crypto Exchange Bitfront Shuts Down Amid Industry Challenges

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Crypto Exchange Bitfront Shuts Down Amid Industry Challenges

Cryptocurrency exchange Bitfront has announced its intention to cease operations in the coming months, citing challenges facing the industry. The U.S. trading platform, backed by Japan’s social media giant Line, indicated the decision is unrelated to the collapse of FTX.

Line-Supported Digital Asset Exchange Bitfront Suspends New Sign-ups

Bitfront, a crypto exchange operating in the United States, has suspended new sign-ups and credit card payments while planning to cease operations in a few months’ time. The move comes despite efforts to overcome the current challenges in the “rapidly evolving” crypto industry, the company announced, quoted by Reuters and Bloomberg.

In the statement published on its website, the exchange explained it has “regretfully determined that we need to shut down Bitfront in order to continue growing the Line blockchain ecosystem and Link token economy.” The U.S.-based platform, which launched in 2020, is backed by the Japanese social media firm Line Corp.

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Bitfront also pointed out that the decision to close down is not related to the problems of “certain exchanges that have been accused of misconduct,” an indirect reference to FTX, one of the largest global players in the market before it collapsed and filed for bankruptcy protection on Nov. 11 amid liquidity issues.

Other companies in the space, like Blockfi for example, have been hurt by exposure to FTX. The crypto lender announced on Monday it has petitioned for Chapter 11 bankruptcy protection along with eight of its affiliates. When Blockfi paused withdrawals earlier this month, it specifically cited the “lack of clarity” regarding the state of FTX at the time.

With a 24-hour volume of less than $94 million, only a dozen trading pairs and six coins, according to Coingecko, Bitfront has a small share of a market with a total trading volume of almost $57 billion over the same period, the Bloomberg report noted.

The exchange informed users that new sign-ups and card payments have been suspended on Nov. 28 while deposits in cryptocurrency and U.S. dollars will be halted on Dec. 30. It also urged customers to withdraw all their assets by March 31, 2023, when all withdrawals will be suspended as well.

Tags in this story

Bankruptcy, Bitfront, Challenges, collapse, Crypto, crypto exchange, Cryptocurrencies, Cryptocurrency, Exchange, ftx, Issues, Japan, Line, operations, Services, shutdown, Social Media, suspension, U.S.

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Do you expect other crypto trading platforms to go out of business? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Ripple general counsel calls BlockFi bankruptcy another success for SEC’s ‘regulation by enforcement’ approach

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Ripple general counsel calls BlockFi bankruptcy another success for SEC’s ‘regulation by enforcement’ approach

Ripple general counsel calls BlockFi bankruptcy another success for SEC’s ‘regulation by enforcement’ approach Oluwapelumi Adejumo · 2 hours ago · 2 min read

Ripple CTO David Schwartz said BlockFi might have gotten a loan from FTX to pay off the SEC’s settlement.

2 min read

Updated: November 29, 2022 at 12:07 pm

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Cover art/illustration via CryptoSlate

Ripple general counsel Stuart Alderoty described BlockFi’s bankruptcy as another success for the U.S. SEC and its regulation-by-enforcement approach.

Another SEC “regulation by enforcement” success story.

Months after $100M BlockFi/SEC deal BlockFi in b/cy. $275M loan outstanding to FTX from BlockFi. Unknown amounts owed to BlockFi from FTX. Nothing ever registered. Fines paid? With whose money? Consumers decimated. https://t.co/XWflfRDIMk

— Stuart Alderoty (@s_alderoty) November 28, 2022

Alderoty referenced the SEC’s $100 million settlement with BlockFi, asking whose money was used to pay the settlement. The Ripple lawyer noted that nothing was ever “registered” in the deal, wondering if  BlockFi made the first two payments to the regulator.

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Nothing was ever “registered” per the BlockFi/SEC deal. What about the first two payments on the $100M fine? If they were made, did the SEC confirm BlockFi’s ability to pay and/or the source of funds? FTX b/cy shows a $250M loan to BlockFi and now customer funds are blocked.

— Stuart Alderoty (@s_alderoty) November 27, 2022

Alderoty also questioned whether the SEC confirmed the crypto lender’s “ability to pay and/or the source of funds” if BlockFi made the payments.

In February, BlockFI agreed to pay the US SEC a $100 million fine for its failure to register its lending product with the regulator. The SEC’s top officials repeatedly highlighted how this enforcement action was a major win for the commission.

In July, BlockFi received a $400 million line of credit from FTX. The Sam Bankman-Fried-led exchange would later file for bankruptcy, forcing the crypto lender to halt withdrawals for its customers.

Ripple CTO alleges SEC fine made BlockFi financially weak

Ripple CTO David Schwartz said BlockFi might have gotten a loan from FTX to pay off the SEC’s settlement. He added that this might have forced the lender to store its assets on FTX in order to continue operating.

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“In other words, the SEC may have made BlockFi so weak financially that it had no choice but to store crypto at FTX to continue operating, possibly the cause of their collapse.”

SEC among BlockFi’s largest creditors

Meanwhile, Nov. 28 court filings have shown the SEC listed among BlockFi’s creditors. According to the court document, the firm owes the financial regulator $30 million.

The bankruptcy filing showed that the lender has over 100,000 creditors, owing over $1 billion to its top 3 creditors.

Its largest creditor is Ankura Trust Company, which is owed more than $729 million. Its second-largest creditor is FTX-related West Realm Shires Inc. which is owed $275 million. An unnamed customer is owed $48 million.

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