Liddell was the light heavyweight champion between 2005 and 2006 and is one of the biggest names in UFC history.
He was commenting on the news that current light heavyweight champion Jones tested positive for cocaine before his title defence against Daniel Cormier. News broke this week that Jones only spent one night in rehab.
Liddell said: "Here's the thing, it's a big story but I haven't talked to Jon so I don't know."
"Jon's a good guy, he's doing well. In this sport he's one of the best guys there is, if not the best. So he's doing a lot of things right."
Liddell added: "He's going to be fine. He made a mistake, give the guy a break."
UFC boss Dana White also commented on the scandal, saying news that there is a different explanation for Jones' brief rehab stint.
White said: "When the whole story comes out, people will understand. It will be put into perspective. When Jon Jones comes out and does his interview, the truth will come out, and everyone will understand. Or they won't, you know. Jon is a very polarising guy, people either love him or they hate him. Either way, the truth will come out soon."