Recently, Liquid, a regulated crypto exchange in Japan, suspended asset deposits and withdrawals as its hot wallets have been hacked in a security breach.

Incident update – 1st September 2021: We have resumed deposits and withdrawals for the below digital assets today: LCX, XCF, DOT, DOGE, EGLD, XKI, ATOM, ZIL, XSGD (ZRC-2), RIF. We are resuming more cryptocurrencies in the upcoming days.

It just looks like the gradual resumption of crypto deposits and withdrawal services continues.

Liquid Global reiterated that users should generate new deposit wallet addresses before transacting. The deposit addresses for all currencies are being changed as a security precaution.

Further, Liquid Global and FTX Official announced the closing of a US$120,000,000 debt financing and the start of good faith discussions in pursuit of further collaborative opportunities.

For Clarity, Liquid Group Inc. (“Liquid”), a cryptocurrency-fiat exchange, and FTX Trading Ltd (“FTX”), owner and operator of FTX.COM, a cryptocurrency exchange.

By combining Liquid’s regulatory framework with FTX’s sophisticated financial expertise, the parties are hoping to achieve exponential growth and success to serve the crypto ecosystem best.

Also, Liquid, via its Japanese operating entity, Quoine Corporation, is one of the first exchanges to be granted a crypto-asset exchange operator license under Japan’s Payment Services Act.  As a regulated exchange in Japan, they adhere to the strict safety standards set by the Japan Financial Services Agency.

Flashback Information about the Hack:

Liquid Global Official expressed:  Important Notice: We are sorry to announce that Liquid Global warm wallets were compromised. As a result, we are moving assets into the cold wallet. We are currently investigating and will provide regular updates. In the meantime, deposits and withdrawals will be suspended.

The following assets had been transferred to hacker’s following addresses (Further investigation to come):

BTC: 1Fx1bhbCwp5LU2gHxfRNiSHi1QSHwZLf7q

ETH/EWT: 0x5578840aae68682a9779623fa9e8714802b59946

TRX: TSpcue3bDfZNTP1CutrRrDxRPeEvWhuXbp

XRP: rfapBqj7rUkGju7oHTwBwhEyXgwkEM4yby

Community response:  No mention of what this means for people’s funds!? Thanks for the reassurance! Hacked? Sure. Employees did it. It’s an excellent way to show “loss” in a fiscal year.

What assets were compromised? Was it ALL eth assets or just eth/ewt? I thought most coins were on cold wallets? For an exchange that touts security as the number one priority, I would be ashamed.  I guess the attack came from a QASH holder, who finally couldn’t stand this company’s repeated deceptions.  You mean the worst quality, most bug-ridden, incompetent exchange ever created got hacked.  Guess people will learn not your keys, not your crypto one way or another.  Sad to see customers lose funds over your negligence.  Didn’t you manage 100% of assets with a cold wallet?

I think all exchanges have some assets in warm wallets to let people withdraw.  If everything is in warm wallets, why does it usually take one full day to make a withdrawal?