FTX Japan, the Japanese subsidiary of the cryptocurrency exchange FTX, announced on February 17th that it had sent an email to its users, requesting that they check their account balances in preparation for the resumption of customer asset withdrawals in mid-February.
In an interview with Bloomberg on February 18th, Seth Melamed, the CEO of FTX Japan, stated that withdrawals for customers would resume “very soon.” According to the email sent on February 17th, customers will be able to transfer their assets to Liquid Japan accounts, which FTX has acquired. FTX Japan had previously announced that it plans to resume withdrawals in mid-February 2023, for the assets that had been frozen during the bankruptcy.
FTX Japan had sent out an email on February 16th asking affected users to check their balances in preparation for asset transfers. Melamed assured Bloomberg that the company is confident in meeting its timeline and will announce the resumption of withdrawals once it has received sufficient data and related approvals for balance transfers.
Reports suggest that as soon as asset transfers become possible, it will be feasible to withdraw assets from Liquid Japan. In 2022, FTX Trading had acquired Liquid and its subsidiary, QUOINE, and renamed the company FTX Japan. FTX Group, which has more than 130 companies, had filed for bankruptcy in the United States in November 2022. FTX Japan has been reporting regularly on its management of customer assets under the supervision of Japan’s Financial Services Agency.
According to documents released on December 26th, 2022, FTX Japan was managing an amount exceeding customer deposits for all 14 cryptocurrencies it dealt with, including Bitcoin (BTC) and Ethereum (ETH). Additionally, the company had been managing legal currency balances of approximately 6.3 billion yen, exceeding customer deposits by approximately 300 million yen.
FTX Japan had been adhering to strict rules set by the Financial Services Agency and following the laws of Japan on separate management of assets. It had managed to minimize the impact of FTX Global’s bankruptcy and taken steps toward a smooth return process, which is being regarded as a first for the industry. FTX CEO John J. Ray III has pointed out that FTX.com’s customer assets were mixed with Alameda Research’s assets, which is FTX’s sister company responsible for market-making.
FTX’s former CEO, Sam Bankman-Fried, has denied the charges against him, but former Alameda Research CEO Caroline Ellison has admitted to criminal charges, including conspiracy to commit wire fraud against FTX’s customers, and is cooperating with prosecutors. FTX is currently conducting a competitive bidding process to sell off four of its businesses, including FTX Japan, with at least 41 companies expressing interest.
Read more:
- FTX’s Collapse Continues To Affect Thailand’s Crypto Market
- Massive Outflow Of $831 Million From Binance In 24 Hours Raises Investor Concerns: Largest Since FTX Bankruptcy And December 2022 FUD
- Judge Denies Request For FTX Bankruptcy Examiner; FTX Wants To Recoup $400M Investment In Modulo Capital
- Former FTX Executive Nishad Singh Expected To Enter Plea Deal With US Prosecutors