Liquid Global, a cryptocurrency exchange, has been inflicted with a hack of approximately $97 million. As a result, FTX, a fellow exchange, provided it a loan of nearly $120 million. The FTX’s CEO, Sam Bankman-Fried, stated that the company is always ready to assist its regulators as well as the customers regarding the solution of their concerns related to security. He added that the priority of the firm is its users, and Liquid is also among them.
In a blog post on Thursday, Liquid Global declared to close debt financing. It mentioned that the upcoming funds are much important for the further development of Liquid and will heighten its capital position to a great extent. The firm further noted that the balance sheet of Liquid would also be balanced by the financing, and subsequently, the main regulatory metrics will also get better. In this way, the ongoing licensing chances will be validated under the jurisdiction of Singapore and Japan.
Liquid Global (which is based in Japan) was informed about the hack through Twitter at the beginning of this month. The exchange further disclosed that the warm wallets under its ownership (which are placed between hot and cold storage) got utilized in such a situation. The benefit of a warm wallet, which is hybrid, is that it provides additional security as well as the capability to carry out transactions that cannot be done through cold wallets. Liquid Global clarified that after the hack, it transferred its existing assets in the cold wallets to protect them. The hack signified that the crypto space requires a greater level of security, about which the regulators have spoken a lot recently.
Bankman-Fried highlighted that the regulation and security have at all times been essential to the activities of an exchange. With the regulators get significantly active, the industry begins to flourish, and more chances are open to getting licensed. Therefore, the company hopes that user funds security is the central attention to acquiring the licenses.
Quoine, the parent firm of Liquid Global, turned one among the earliest exchanges which were granted an operating license for digital assets under the 2017’s Japanese Act for Payment Service. Bankman-Fried expressed that the exchange is looking forward to continuously assist others in the matter of crypto regulations more effectively than before, as supporting a broader community of cryptocurrency provides a significant benefit.