Recently-Hacked Exchange Liquid Global Secures $120M Loan From FTX
11 min ago•1 min read•Regulation
Japan’s cryptocurrency exchange Liquid Global and Sam Bankman-Fried’s crypto exchange FTX have signed a debt financing deal in which FTX will lend Liquid $120 million.
Last week, the Japanese cryptocurrency exchange Liquid saw more than $90 million stolen in a hack. At the time, the firm said the attack targeted its multiparty computation (MPC) system of custody. The debt financing secured from FTX will be used for Liquid’s capital position and to speed up capital generation projects, as well as provide critical liquidity, said the firm. “The financing will also improve Liquid's balance sheet and, in turn, its key regulatory metrics, which further corroborates its ongoing licensing opportunities in the key jurisdictions of Japan and Singapore,” said the firm in a press release. "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," said Sam Bankman-Fried, CEO of FTX. Liquid’s parent company, Quoine, was one of the first exchanges to receive a crypto asset operating license under Japan's Payment Services Act. Liquid's Singapore subsidiary, Quoine Pte, has also applied to the Monetary Authority of Singapore (MAS) for a license under Singapore's Payment Services Act.