Liquid Global exchange secures $120M loan from FTX after hack

The funding comes soon after Liquid suffered a major hacking incident last Thursday when the exchange’s warm wallets were compromised.

Liquid Global exchange secures $120M loan from FTX after hack

Liquid, The Japanese crypto exchange has secured a $120 M  loan from FTX Trading after suffering a nearly $100 M  hack last Thursday.

In an announcement,  Liquid Group and FTX Trading said that the new funds will help Liquid improve its balance sheet and contribute to the exchange’s licensing opportunities in the key jurisdictions of Japan and Singapore. 

The new funding also targets new capital generation, increasing liquidity, as well as improving the exchange’s customer support, the announcement stated.

Sam Bankman-Fried CEO and founder of FTX exchange said that the new financing underpins collaborative efforts of both exchanges to drive crypto adoption and provide better service to the ecosystem.

The funding comes soon after Liquid suffered a major hacking incident last Thursday when the exchange’s warm wallets were compromised. According to calculations by blockchain analytics firm Elliptic, Liquid hackers stole a total of $97 million in various cryptocurrencies including Ether (ETH), XRP, stablecoins, Bitcoin (BTC), and other tokens.

In an incident update on Monday, Liquid reassured customers that “they will not suffer any loss due to the incident,” adding that user balances will not be affected. “We continue to work diligently to gradually restore crypto deposit and withdrawal services,” Liquid noted.

Liquid’s hack was the second major crypto heist that took place this month, following a massive exploit of cross-chain protocol Poly Network on Aug. 10. As of Aug. 23, Poly Network regained control of $610 million in assets affected in the attack as the unknown hacker returned the stolen funds to the network.

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