FTX Japan, a subsidiary of the troubled cryptocurrency exchange FTX, has announced that the withdrawal of users’ fiat currency and crypto assets will commence via the Liquid Japan web platform on February 21st. This move comes after FTX Japan halted operations in November 2022, following its parent company FTX filing for bankruptcy along with its 134 subsidiaries, freezing the assets of an estimated 9 million customers and billions of dollars locked in legal proceedings.
The announcement from FTX Japan states that customers who have assets in their accounts will need to confirm their balance and transfer them to their Liquid Japan account. Liquid Japan is a licensed Japanese crypto asset exchange that was acquired by FTX in April 2022. FTX Japan customers who do not have a Liquid Japan account will be required to open one before receiving their assets.
Reports indicate that FTX Japan had approximately 19.6 billion yen in cash worth more than $138 million when it ceased operations in November 2022. By Japanese law, FTX Japan was required to segregate client funds from its assets. However, on November 10th, 2022, the Financial Services Agency of Japan ordered FTX to suspend business operations, such as accepting new deposits, and to comply with a business improvement order. Due to bankruptcy proceedings, the vast majority of FTX customers, including users of FTX US, are still unable to withdraw their assets.
The announcement of the commencement of withdrawal for FTX Japan customers is seen as a positive development for those who have been waiting to access their funds since November 2022. However, it is unclear when other FTX customers will be able to access their assets as the bankruptcy proceedings are ongoing.
