Crypto derivatives exchange FTX has stepped in to loan Liquid exchange $120 million after the Japanese platform was hacked for an estimated $90 million on August 19th.
FTX CEO Sam Bankman-Fried tweeted,
“We’ve admired what Liquid has been working towards: a leader in international cryptocurrency compliance, and one of the longest running exchanges in the ecosystem.
But for us, and for the Liquid team… the customers always come first. Which is why the first priority… was to make sure that everyone was going to be protected. All customer assets are safe and fully backed.”
Liquid has also provided a series of updates regarding site functionality and the fate of affected users’ funds.
“We want to reassure our users that they will not suffer any loss due to the incident that took place on the 19th of August. There will be no impact on user balances at Liquid.
We would also like to reassure our customers that personal data was not compromised in any manner during the incident.
We would like to announce the start of the gradual resumption of crypto deposit and withdrawal services… in a safe and secure manner.
Users should generate new deposit wallet addresses before transacting. The deposit addresses for all currencies are being changed as a security precaution.”
In addition to the debt financing, FTX and Liquid “have entered good faith discussions in pursuit of further collaborative opportunities.”
Liquid chief operating officer Seth Melamed says,
“We are encouraged by the support of FTX and look forward to accelerating Liquid’s road map of initiatives to bring innovative products in the markets we serve in Japan and the world. By collaborating with FTX, we see enormous opportunities to drive innovation and change the future of finance with blockchain technology.”
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/geogif