- Japan’s Financial Services Agency asked FTX Japan to cease operations ahead of US bankruptcy filing.
- In December, FTX branches applied for permission to resume withdrawals.
- Customers are asked to verify their account balance before resuming withdrawals.
The Japanese branch of the bankrupt virtual currency exchange FTX seems to be considering resuming withdrawals by the end of February. Bloomberg reported on February 17 that the exchange sent messages to affected customers asking them to verify their account balances before resuming withdrawals.
According to exchange COO Seth Melamed, customers will be able to move their crypto assets to the FTX-owned Liquid Global platform, with withdrawals likely to start “soon.”
FTX Japan and FTX Global
In November, FTX along with its affiliates filed for Chapter 11 bankruptcy in the United States. But even before FTX filed for bankruptcy in the US, Japan’s Financial Services Agency (FSA) had already asked FTX Japan to cease operations.
In December 2022, FTX Japan applied for a strategy to resume user withdrawals. This strategy sought to distinguish between company money and customer money. The company argued that customer funds should be exempt from the exchange’s bankruptcy proceedings in Japan.
In mid-January 2023, FTX received approval from a U.S. court to sell certain entities, including FTX Japan.
At the end of business in November 2022, FTX Japan reportedly had about ¥19.6 billion in cash.
FTX Japan’s recent developments began when former FTX CEO Sam Bankman-Fried received a subpoena from a creditor. Voyager Digital unsecured creditor representatives say Sam Bankman-Fried and several top-level executives at FTX and Alameda Research have filed paperwork and will appear in court remotely next week for depositions I am requesting that