According to a release, FTX Japan will begin withdrawal services on February 21 at 12:00 Japan time through the Liquid Japan web platform.
Liquid Japan will help with the withdrawals.
FTX was given approval to sell its Japanese businesses.
The withdrawal of customer assets from the defunct cryptocurrency exchange FTX’s Japanese subsidiary, FTX Japan, resumed on Tuesday at noon (Japan Standard Time). The Liquid Japan web interface will enable the withdrawal of FTX Japan’s fiat cash and cryptocurrency assets.
FTX Japan Restarts Withdrawals
Customers holding assets in their FTX Japan accounts “would need to validate the balance of their assets and transfer them to their Liquid Japan account in order to proceed with withdrawals,” the exchange noted in an official press statement on Monday.
“We have emailed all qualified consumers with information on the specifics of the process. Please follow the directions in the email to finish the process if you haven’t already.
The information clarified that in order to withdraw their assets, FTX Japan customers without a Liquid Japan account must open one. A locally authorised bitcoin exchange called Liquid Japan was purchased by FTX in April.
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In December, FTX Japan opened the withdrawals that were consistent with its pledge. The exchange that failed afterwards said that withdrawals would be available to Liquid Japan and FTX Japan users in the first quarter of 2023.
The exchange emphasised the potential for possible processing delays for withdrawal requests in its most recent notice.
“The withdrawal process may take some time to complete due to the high volume of consumer requests. Other FTX Japan services will resume as soon as we can, according to the release.
A Failure of FTX
The fall of Sam Bankman-FTX Fried’s empire in November led to the suspension of withdrawals at FTX Japan and Liquid.com. In addition, FTX and its 134 affiliates filed for bankruptcy in the US, locking up digital assets worth billions of dollars that belonged to an estimated 9 million consumers and putting them in the hands of the courts.
Also, the administrators of FTX are vying to take over the roughly $3.5 billion worth of cryptocurrencies that are currently under the authority of The Bahamas’ financial markets regulator. These cryptocurrencies are FTX clients’ property.
The Prospects for FTX Japan
After the liquidity crisis that its parent firm was experiencing, Liquid stopped all withdrawals on November 15. Nonetheless, FTX’s Japanese subsidiaries ran their businesses separately from their corrupt parent.
Four independently operated companies, including FTX Japan, were allowed to be sold by the management of FTX while bankruptcy procedures were ongoing. The other three platforms are FTX Europe, Embed Technologies, an equities trading platform, and LedgerX LLC, a derivatives exchange subject to CFTC regulation.
As it stopped operations in November, FTX Japan, which began operations in June 2022, had around 19.6 billion yen in cash and digital assets, or more than $138 million. In addition, the Kanto Local Finance Bureau of Japan took regulatory action against it for the wrongdoings of its parent by suspending the local licence until March 9th, 2023.
