The British cryptocurrency investment platform Quantia, which operates in Argentina, has communicated to its users the decision to stop withdrawing funds, based on the situation generated by the bankruptcy declared in the United States by an exchange FTP extension.

“This decision was made to protect each of the clients and convey peace of mind, showing transparency in management and thus avoiding a liquidity problem, with which one client could be harmed or favored to the detriment of another” said the co-founder of Quantia Miguel Schweizer.

The company specified this in a note “The exchange’s exposure to FTX is partial, hovering around 35% of assets.”

“We are working to recover all the obligations that are due to Quantia”, explained Schweizer, who assured: “We are actively working on different alternatives and possible scenarios, to restore the withdrawals very soon”.

Similarly, and to protect the rest of the assets, the exchange suspended all trades with counterparties for the next seven days, “until the situation in the entire cryptocurrency market normalizes.”

The company specified that “at this time withdrawals continue to be suspended, but internal wire transfers are enabled through the Quantia-Internal network”.

He also pointed out that “trading within the platform is functioning normally, as it has not been affected by the FTX situation.”

However, they recommended users “not to make deposits until all services are normalized.”

They also announced that “the exchange will be prepared next Monday, November 21st a new press release on the updated status of the situation”.

The collapse of the FTX

The FTX cryptocurrency trading platform launched bankruptcy proceedings last Friday in the United States which also led to the resignation of its owner, the young billionaire Sam Bankman-Fried, who had intended to donate his entire fortune.

The decision confirms the total collapse of this platform, one of the most important in the sector, which was valued at 32,000 million dollars and which has significantly depreciated in recent days due to lack of liquidity and with users rushing to withdraw their funds.

In a statement, FTX assured that the bankruptcy filing is the right measure to manage assets of the company and protect the interests of its shareholders.

The trial will affect approximately 130 affiliates, including its investment firm Alameda Research, but not its subsidiaries Ledgerx.LLC, FTX Digital Markets, LTD, FTX Australia and FTX Express Pay.

The company has announced that the role of chief executive will be taken by John J. Ray III, an attorney who steered controversial energy company Enron through its historic collapse in the early 2000s.

For their part, Bankman-Fried and many of the firm’s employees will continue to work to assist the new CEO and independent professionals through the bankruptcy process.

The 30-year-old billionaire said then he was doing everything he could to get liquidity and avoid a bankruptcy that finally materialized this Friday, with a financial hole estimated at around 8,000 million dollars.

In the meantime, many details about the platform’s functioning have come to light, including the fact that FTX has used billions of dollars deposited by its customers to finance risky investments.

FTX lent the money to its investment firm, Alameda Research, which used it in aggressive trades and now owes the platform some 10,000 million dollars.