FTX Japan, the Japanese subsidiary of cryptocurrency exchange FTX Trading Ltd, has resumed withdrawal services for both fiat currency and cryptocurrencies after three and a half months since the parent company’s bankruptcy. In a recent interview with FTX Japan’s CEO, Seth Melamed, he discussed the progress made in returning customer assets and the outlook for the future of the company.
According to Melamed, FTX Japan is currently focusing on making the withdrawal process as smooth as possible and responding quickly to user inquiries. He also shared that as of February 21, 2023, the withdrawal service for fiat currency had resumed, and as of February 28, more than 5,400 individual and corporate users had received over 9.69 billion yen ($71 million) in withdrawals.
FTX Japan has been updating its customers on the progress of withdrawals and withdrawals through announcements on its website. The company’s main priority was to restart the withdrawal process for authenticated accounts as quickly as possible, in a safe and accurate manner. However, the biggest challenge the company faced was obtaining data from FTX’s various systems and verifying its accuracy.
While many other companies within the FTX Group have not been able to return user assets, Melamed explained that FTX Japan was able to do so because it is subject to Japanese regulations, particularly in regards to “separate management” of customer assets in both fiat currency and cryptocurrencies. The fiat currency is held in a designated third-party trust bank account, while the cryptocurrencies are stored in a separate cold wallet, which is disconnected from the internet and thus more secure. Melamed emphasized that access to these assets was never granted to anyone outside of the FTX Japan and Liquid Japan teams.
All customer assets from authenticated accounts with FTX Japan and Liquid Japan are under FTX Japan’s control, and withdrawals are prioritized based on predetermined conditions. These conditions include the completion of Know Your Customer (KYC) procedures and approval from Liquid Japan after transferring the balance from FTX Japan’s account to their own account. The company notified its users of these conditions through its website and email.
However, some Japanese users have been unable to withdraw their assets, reportedly due to their involvement in illegal activities or their non-compliance with the aforementioned conditions. FTX Japan has stated that it is working to resolve these issues as soon as possible.
In summary, FTX Japan’s resumption of withdrawal services is a significant milestone in the company’s rebuilding process. With a focus on user asset management and adherence to Japanese regulations, the company aims to restore customer trust and continue providing high-quality services in the future.
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