FTX, the popular cryptocurrency exchange founded and led by Sam Bankman-Fried, collapsed in November 2022, leaving many users without access to their funds. Since then, there have been various developments in the case, with FTX’s Japanese subsidiary announcing that it will resume crypto and fiat withdrawals. The news about the withdrawals resuming in Japan had first been announced by a senior official of the Financial Services Agency in mid-January.
In a recent statement, FTX Japan revealed that it would begin allowing withdrawals at noon in Tokyo. The exchange currently has a total of fourteen assets available for withdrawal. FTX emphasized that customers’ assets are managed separately in accordance with laws and regulations, with crypto assets in cold wallets and fiat currencies in trust accounts in Japan.
To begin the withdrawal process, FTX Japan has sent emails to all qualified clients. The exchange has partnered with Liquid Japan, a cryptocurrency trading company that FTX acquired last year, to handle the withdrawal procedure. Clients will need to register for an account on Liquid Japan and confirm the balance on their FTX Japan account.
However, FTX Japan issued a warning that a large number of consumers filing withdrawal requests could overwhelm the withdrawal process. The exchange acknowledged that it might take some time to process requests due to the concentration of requests from a large number of customers. FTX Japan stated that it would inform customers about the resumption of other services at a later time.
Customers who transacted business with FTX.US remain in limbo as the exchange continues its bankruptcy process. Japan’s regulators were commended for quickly enacting strict laws to safeguard its investors.
The resumption of withdrawals by FTX Japan is a positive development for customers affected by the exchange’s collapse. The exchange’s warning about the potential for processing delays highlights the importance of patience and understanding during this process. It remains to be seen how FTX will resolve the bankruptcy of its US branch, but Japan’s strong investor protections should provide some comfort to affected customers.
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