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.
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.