Clients of FTX Japan will soon be able to regain access to the funds that have been frozen due to bankruptcy proceedings. Two FTX-owned cryptocurrency trading platforms, FTX Japan and Liquid, are reportedly working on a system that will allow customers to make withdrawals as early as mid-February.
FTX Japanese Clients Can Withdraw Assets Soon
Two FTX-owned cryptocurrency exchanges based in Japan, FTX Japan and Liquid, announced on Thursday that their users will be able to withdraw assets mid-February. The two crypto markets are currently working on a system to enable withdrawals from the Liquid platform.
For the assets entrusted by customers to FTX Japan and Liquid Japan, we are currently developing the system so that withdrawals can be made from the Liquid Japan website.
In order to withdraw funds, FTX Japan clients will need to open an account on Liquid, allowing them to transfer their assets and wealth to the Liquid platform. The exchanges aim to begin allowing withdrawals by mid-February.
Earlier this year, Liquid FTX purchased a Japanese exchange. The offer included Quoine Corp., one of the first cryptocurrency exchanges to register successfully with Japan’s main financial regulator, the Financial Services Agency (FSA), in 2017.
The acquisition followed a major hack that saw around $90 million worth of crypto stolen from the Liquid platform. FTX then provided Liquid with $120 million in debt financing at the time.
FTX filed for bankruptcy on November 11. However, FTX Japan confirmed on Dec. 1 with its lawyers that “cash and cryptocurrency from Japanese customers should not be part of FTX Japan’s assets, given the way these assets and interests are held, in accordance with Japanese law.”
In November, the FSA issued three orders against FTX Japan: a business improvement order, a business suspension order, and a nationwide asset freeze. The orders were placed immediately after the exchange stopped customer withdrawals. The following day, FTX filed for bankruptcy in the US. The exchange and its former CEO Sam Bankman-Fried (SBF) have been indicted on multiple counts of fraud by the US government.
What do you think about FTX Japan customers being able to reclaim their funds? Please let us know your thoughts in the comments section.
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