The Japanese subsidiary of the now-bankrupt crypto exchange FTX is looking to begin returning customer assets from February next year, the company said in a statement Thursday.
FTX Japan said it is developing systems to enable its customers to withdraw their assets via Liquid Japan, a crypto trading platform acquired by FTX Trading Ltd in an undisclosed deal this spring.
A three-step process will see customers open Liquid Japan accounts by mid-January, followed by balance checks and the opening of withdrawals in mid-February.
"We deeply apologize for the big trouble caused by the prolonged suspension of services for the withdrawal of legal currency as well as crypto assets," the subsidiary said in yesterday’s statement.
Liquid Global Halts Withdrawals as FTX Contagion Continues
Cryptocurrency exchange Liquid Global today said it is halting all withdrawals—both fiat and crypto—from the platform. “Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States,” the exchange stated on Twitter. Liquid said it would provide further updates “when available,” advising customers not to make any deposits on the platform. Fiat and crypto withdrawals have been suspended on Liquid Globa...
FTX Japan put on sale
Earlier this month, the Japanese company said it confirmed with the law firm representing FTX Trading in the Chapter 11 bankruptcy proceedings that Japanese customers’ cash and cryptocurrency holdings “should not be part of FTX Japan’s estate.”
Further developments saw the crypto exchange's new management team, which is now helmed by John Ray III, file a motion to the Bankruptcy Court of Delaware to approve bidding procedures for four of the firm’s independent solvent subsidiaries in the U.S., Japan, and Europe.
It was also reported that FTX Japan was holding about $94.5 million in crypto assets and $46 million in fiat currency in designated client accounts.
FTX Files to Sell Four Independently Operated Subsidiaries
Yesterday, the collapse crypto exchange FTX filed a new motion to the Bankruptcy Court of Delaware to approve bidding procedures for four of the firm’s independent solvent subsidiaries. The sale of the subsidiary businesses is an attempt to generate money to repay its creditors, to which the company owes billions of dollars. Bankrupt businesses must obtain permission from the court if the sale of assets is outside the ordinary course of business. According to the filing, FTX wants to sell Embed...
FTX Japan was less than six months old when its parent company collapsed. When it launched back in June, Bankman-Fried was appointed its interim CEO.
At the time, he described Japan as “a highly regulated market with a potential market size of almost $1 trillion when it comes to cryptocurrency trading.
