The funds held in FTX Japan will not be subject to ongoing bankruptcy proceedings in the US.
FTX Japan has around $94.5 million in cryptocurrency holdings.
The Japanese unit of the insolvent crypto-empire FTX announced that it is striving to allow users to withdraw their funds. FTX Japan opens the door in the mid of the extremely unprecedented circumstance in which investors withdraw funds back from the bankrupt exchange.
Sam Bankman Fried’s FTX Japan momentarily halted withdrawals on November 8. According to a recent update, the new FTX Trading management team has authorized the plan to resume withdrawal services. In addition, the crypto exchange is implementing controls, security audits, reconciliations, and reviews as part of the plan of Japan’s FTX.
FTX Japan to Resume Local Customer Withdrawals
Japan subsidiary of the collapsed crypto exchange FTX, was established in June of this year after obtaining the Japanese cryptocurrency exchange Liquid in February, a platform to increase its local presence. However, Sam Bankman Fried’s vast network of FTX group companies tumbled into a catastrophic bankruptcy, possibly misleading more than a million creditors worldwide and causing chaos in the cryptocurrency industry on November 11.
However, FTX Japan stated that it would be able to prove that the assets of its clients not be included in FTX Japan’s legacy due to Japanese laws requiring cryptocurrency exchanges to maintain client funds separate from their own assets. FTX Japan now has $46 million in designated client accounts and around $94.5 million in cryptocurrency holdings.
Further, Japan’s financial regulator has been looking for a plans and road map for the quickest possible recovery of customer assets. Following the verification procedure, FTX Japan customer funds will be transferred to Liquid so that, consumers can withdraw their money.