FTX Japan to Allow Withdrawals for Users Affected by Bankruptcy
FTX Japan, the Japanese subsidiary of bankrupt cryptocurrency exchange FTX, has announced plans to enable withdrawals for its affected customers starting in February.
The process will require customers to verify their account balances, and they will be able to transfer their assets to accounts on the Liquid Global platform, which FTX controls. The exchange’s chief operating officer, Seth Melamed, has expressed confidence that the deadline will be met.
FTX Japan, which filed for protection under Chapter 11 of the United States Bankruptcy Code in November 2022, sent a proposal to the Financial Services Agency of Japan in December to exclude its customer assets from the bankruptcy proceedings.
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This was due to requirements stipulating that exchanges keep customer money separate from their own funds. The FSA had recommended that FTX Japan halt business orders before the bankruptcy filing in the United States.
According to reports, FTX Japan had around 19.6 billion yen in cash when it suspended operations in November, equivalent to over $138 million. Meanwhile, creditors of FTX had collected more than $5 billion in cash and cryptocurrency as of January.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
