Home Crypto Updates Liquid Japan Users to Receive Withdrawal Access in February

Liquid Japan Users to Receive Withdrawal Access in February

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Liquid Japan Users to Receive Withdrawal Access in February

The FTX logo on a laptop display.

Andrei Rudakov | Bloomberg via Getty Images

Subscribers to Liquid Japan will soon be able to access their funds, according to an announcement from the company’s subsidiary. February is the expected start date for withdrawals. It was revealed on Thursday that the firm is in the process of creating a system that would allow customers to view their balance online and then be able to withdraw the funds.

“We deeply apologize for causing great concern and inconvenience to our customers due to the long-term suspension of service,” the company said in a Japanese-language blog post on their website, which was translated via Google.

FTX Japan developed a plan for the restoration of client funds, which will begin with the opening of a bank account with Liquid Japan in the middle of January, followed by the transfer of assets from FTX Japan to Liquid Japan and the reopening of withdrawals in February.

This news comes after the company’s December 1 statement, in which they confirmed with FTX Group lawyers that “cash and crypto from Japanese customers should not be part of FTX Japan’s assets based on the way these assets are held” in accordance with Japanese laws regarding property and real estate interests.

The news provides some relief to FTX clients, who have been unable to access their money since the company filed for bankruptcy and blocked withdrawals last month. John J. Ray III, the firm’s new acting chief, has said international clients should expect to get less money back from the bankruptcy court than US customers.

Liquid was purchased by FTX in February of this year in an undisclosed deal as part of their expansion into East Asia. Prior to that, the company had been hacked for over $90 million worth of crypto in a major cyber attack. FTX, led by Sam Bankman-Fried, had presented itself as a savior for struggling crypto firms, providing Liquid with $120 million in debt financing.

Meanwhile, the Bahamas Securities and Exchange Commission reported on Thursday that they had seized $3.5 billion worth of crypto assets from FTX “for safekeeping” and were awaiting instructions from the country’s Supreme Court on how to return the funds to the clients and creditors, as well as the liquidators.

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