Japanese cryptocurrency exchange Liquid lost $90 million following an attack last week, but it might now have a way out of its troubles
Leading cryptocurrency exchange FTX will lend $120 million to Japanese crypto exchange Liquid Global. This comes after Liquid lost $90 million to hackers last week in an attack that reminded the crypto space that more needs to be done in terms of security.
Following the attack, Liquid revealed that the hackers targeted the cryptocurrency exchange's multiparty computation (MPC) custody system. As a result, FTX, led by billionaire Sam Bankman-Fried, has agreed to lend the Japanese cryptocurrency exchange $120 million.
Liquid Global, in a blog post yesterday, said, "We are encouraged by the support of FTX & look forward to accelerating Liquid's roadmap of initiatives to bring innovative products in the markets we serve in Japan and the world."
Quoine, Liquid Global's parent company, is one of the first entities in Japan to obtain a crypto asset operating licence.
The funds will be used for the cryptocurrency exchange's capital position and to fast-track capital generation projects. It will also provide much-needed liquidity for the Japanese cryptocurrency exchange.
Liquid Global added that it is currently in discussions with FTX in a bid to see how the two cryptocurrency exchanges can collaborate on further opportunities. "Combining Liquid's regulatory framework with FTX's sophisticated financial expertise, the parties hope to achieve exponential growth and success to best serve the crypto ecosystem," Liquid added.
FTX has recorded tremendous growth over the past 12 months, rising to become one of the leading cryptocurrency exchanges in the world. Last year, FTX was valued at around $2 billion. However, the massive growth recorded by the cryptocurrency exchange saw it reach an $18 billion valuation last month.
The growth can be attributed to the performance of the broader cryptocurrency market, with the prices of Bitcoin and other leading cryptos recording excellent gains in the past 12 months. FTX continues to position itself nicely in the market, with numerous partnerships and sponsorships in the sporting world helping it grow its brand reputation.