FTX Japan To Allow Withdrawals

The Japanese subsidiary of the bankrupt crypto exchange FTX has revealed its plan to resume fiat currency and crypto assets withdrawal for their users through its blog post. According to the announcement, FTX Japan will enable customers to withdraw their funds starting from February 21, months after suspending its services.

After a three-month wait, users of FTX Japan will finally be able to withdraw their assets. However, the privilege does not extend to any of the exchange’s international counterparts. https://t.co/BhdYjbWDfr

— Cointelegraph (@Cointelegraph) February 20, 2023

The platform revealed that its customers would withdraw their assets via Liquid Japan’s website. Liquid Japan is a crypto exchange licensed under the Japanese payment service that its parent company, FTX, acquired in February last year.

However, as per FTX Japan, customers who have their assets in their accounts would need to confirm their balance and transfer them to their liquid Japan account. Notably, those customers who do not have a liquid Japan account are required to have one before moving their assets.

FTX, one of the largest crypto exchanges globally, slid into bankruptcy in November 2022. The downturn in the crypto industry led to over a million creditors’ pockets hanging and stranded. Notably, Sam Bankman-Fried (SBF), the platform’s co-founder, pleaded not guilty to fraud charges ahead of a US trial.

However, SBF’s spokesperson, Mark Botnick,  noted via an email as per Bloomberg reports that:

Bankman- Fried is happy to see that the Japanese exchange is moving forward and maintains that the US entity can and should do the same soon as possible.

FTX Japan to reveal commencement of other services soon  

The FTX Japan noted that it is sending emails to its eligible clients concerning the details of the process and the required steps to follow to withdraw their funds. As per the statement, FTX Japan may need time to process withdrawals if many requests are flowing in from its customers. The platform noted:

Please note that due to many customer requests, it may take some time for the withdrawal process to be completed.     

Additionally, the platform noted that it would reveal the resumption of other services the firm offers as soon as possible. The resumption of withdrawals could signify a victory for Japan’s financial regulators. The regulators have moved quickly to establish strict rules and regulations to protect clients, including the segregation of assets. Notably, Japan has been calling on its international counterparts to oversee crypto strictly, as they do commercial banks.

As per the reports, FTX Japan had roughly 19.6 billion yen in cash, worth more than $138 million, when it stopped offering its services in November 2022. The Financial Agency of Japan revealed that it had ordered FTX to suspend its business operations, including accepting new deposits and complying with a business improvement order.

Will other FTX subsidiaries follow FTX Japan’s footsteps?

Most FTX exchange customers are troubled and left to wonder, whether they will receive their lost money after FTX’s demise. After FTX filed for bankruptcy, the exact duration of the bankruptcy process remains to be determined. It might take several years or months for traders and customers to obtain answers concerning their lost funds.

However, FTX Japan has set an example for other FTX subsidiaries who halted their services, including withdrawal of funds, to get back on track and resume their activities with their customers

However, as of now, FTX users can only wait for more news from FTX and its new management. The new regime, headed by John Ray III, previously noted that they are trying to recover the customer’s lost funds.

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