FTX Japan Becomes First in Group To Resume Withdrawals

FTX Japan, the Japanese arm of Sam Bankman-Fried’s defunct crypto empire, is the first affiliate to allow customers to withdraw funds, some three months after it suspended service.

Withdrawals were expected to reopen on Tuesday at noon Tokyo time, the company announced via a statement addressed to its former and current customers.

The move could be seen as a small win for Japan’s financial regulator, which put tough measures in place under the guise of protecting clients, including asset segregation, all while advocating for its international counterparts to do the same.

If a large number of withdrawal requests flow in, FTX Japan may require some time to process them which it said it was anticipating. FTX Japan suspended withdrawals in mid-November, around the same time that the FTX group fell into bankruptcy, leaving an estimated one million global creditors stranded.

FTX Japan is currently up for sale as part of US bankruptcy proceedings and has garnered interest from at least 41 parties.

The company had around 10 billion yen ($74 million) in net assets as of September 2022 and cash and deposits worth approximately 17.8 billion yen as of November 21, according to a separate statement on its website.

FTX co-founder Bankman-Fried has pleaded not guilty to fraud and additional charges ahead of a US trial including wire fraud, money laundering, and violating campaign finance laws. The charges carry a maximum penalty of 115 years in prison.

Bankman-Fried was released on $250 million bail and ordered to stay under house arrest. He’s awaiting trial in October.

Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to federal criminal charges.

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Source: https://blockworks.co/news/ftx-japan-resumes-withdrawals