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FTX provides $120 million in loan finance to the Hacked Liquid Exchange

Following a nearly $100 million breach last week, Japanese cryptocurrency exchange Liquid has obtained $120 million in debt financing from FTX Trading.

FTX And Liquid

According to a statement, the additional funds will assist Liquid Group and FTX Trading. The owner and operator of crypto exchange FTX will enhance their balance sheets. Therefore, to contribute to the exchange’s licencing prospects in major countries, including Japan and Singapore, released on Thursday. According to the release, Liquid will use the additional financing to generate fresh capital, increase liquidity, and improve client service.

The additional funding reinforces both exchanges’ joint efforts to increase crypto adoption and deliver superior service to the ecosystem. ”This partnership with Liquid allows both businesses to deepen and reaffirm their view that crypto regulation and understanding your client is a vital part of our industry’s future,” FTX CEO said.

The Liquid Hack

The financing comes only days after Liquid had a significant hacking breach last Thursday. According to estimations by blockchain analytics firm Elliptic, liquid hackers took a total of $97 million in different cryptocurrencies.

Customers will not incur any loss due to the incident, Liquid said in a Monday statement. Liquid stated, “We continue to work tirelessly to restore crypto deposit and withdrawal services progressively.”

Second Signficant Crypto-Theft

Following a huge vulnerability of cross-chain protocol Poly Network on Aug. 10, Liquid was the second significant crypto theft of the month. Poly Network recovered control of $610 million in assets impacted by the assault on Aug. 23, when the anonymous hacker returned the stolen cash.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.