The Liquid global hacked exchange secured over $120 million in loan from leading crypto exchange FTX as we are reading more in our latest cryptocurrency news today.
The recently Liquid global hacked exchange secured a $120 million debt financing from Bankman Fried’s FTX exchange and according to the official statement, the recent funding is a part of the efforts by both parties to pursue other opportunities that will contribute to the global crypto ecosystem. Seth Melamed, the COO of Liquid said that the company’s joint venture with FTX is key in delivering top-notch services and other innovative products for the customers in Japan and the rest of the world:
“By collaborating with FTX, we see enormous opportunities to drive innovation and change the future of finance with blockchain technology.”
Under the new partnership, the FTX financial expertise will be combined with Liquid’s efficient regulatory framework which helps the parties achieve huge growth in the crypto sector. Since the launch, Liquid was serious about the regulatory compliance in other locations where the operations are based and obtained relevant regulatory approval to solidify the business transparency. Liquid holds an operational license from the Japanese Financial Services Agency and the company is looking for approval from the Monetary Authority of Singapore as well. The CEO of FTX Sam Bankman Fried said:
“This opportunity with Liquid allows both organizations to strengthen and reinforce the belief that regulation in crypto and knowing your customer is an important part of the future of our industry.”
According to the announcement, the fund will be used to solidify the Liquid capital position and accelerate the company’s capital generation projects as well as provide more liquidity to exchange. The funds will be used to enhance the balance sheet of the company which will boost the regulatory metrics to help obtain the necessary approval from the global regulatory bodies. The development came one week after the Japanese crypto exchange suffered a devastating hack that targeted the Multiparty Computation system of custody. The exchange disclosed that the wallets were compromised and this led to the loss of $90 million worth of BTC, XRP, ETH, and Tron. While the stolen funds weren’t sufficient to put the balance sheet in jeopardy, they will be useful in providing a temporary cover for the inconvenience.
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