FTX Gets New Date To Return User Funds In Japan, Here’s Why

FTX Japan News: While investigations against Sam Bankman-Fried on various fronts are intensifying, uncertainty prevails around the customer funds. In a latest, the Federal prosecutors met FTX new chief executive officer John J. Ray III and the company’s bankruptcy lawyers. It is close to a month since the troubled crypto exchange filed for chapter 11 bankruptcy. On the other side, the US Securities and Exchanges Commission (SEC) is also probing whether user funds from FTX US have been misused.

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Japanese Arm Gets Fresh Date To Return User Funds

In a latest, the financial regulators of Japan issued a new deadline for returning customer funds. On Friday, the country’s Kanto Local Finance Bureau extended the order for suspending operations of FTX Japan. The agency extended the deadline by three months citing pending return of user assets. While FTX Japan was to be originally suspended on December 9, the agency assigned March 9, 2023 as the new deadline.

More importantly, the regulatory agency noted that FTX could not return crypto assets in the prescribed time. This means the liquidity crisis continues to drag on not just at the main FTX crypto exchange but also in the Japan arm. In a recent bankruptcy filing, the company said it owed as much as $3 billion to its top 50 creditors. This is besides the millions of small retail investors who had assets in FTX.

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Meanwhile, the Japanese agency also said trading at FTX Japan continues to be suspended. According to a Reuters report, the exchange is not ready to perform operations currently. Meanwhile, the FTX Token (FTT) price rose significantly on Friday. As of writing, FTT price stands at $1.81, up by a staggering 34.42% in the last 24 hours, according to price tracking platform CoinMarketCap.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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