FTX Japan Makes Efforts to Restore Services on February Next Year

FTX Japan draws a plan for the resumption of withdrawal services on February 2023 since its suspension on November 8.
In light of the welcome fund recovery announcement, the FTX subsidiary issued an apology to users for its prior account suspension.

According to reports, FTX Japan is developing systems that look to refund customers from February following the collapse of FTX that set off the largest crypto-related bankruptcy ever. The FTX Japanese subsidiary explained that the process facilitates customer recovery of stuck assets via liquid japan.

FTX Japan is a Japanese-based crypto exchange, formerly known as Liquid, that Bahamas-based FTX purchased in early 2022, and Bankman-Fried was appointed its interim CEO.

For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that [withdrawals] will be possible from the Liquid Japan web version.

The customers have to follow a three-step directive provided by the subsidiary to get their assets. To start with, the customers will open accounts with Liquid Japan before February, and go through credit and debit transactions for the month to understand how much money they have available.

Those who will have filled out the bill will be eligible to make withdrawals in Mid February. Notably, transactions only occur on the Liquids webpage or its mobile app.

FTX Japan to Refund Customers Starting February 2023
FTX Japan is developing systems to enable customers to recover their stuck assets via local crypto exchange Liquid Japan. pic.twitter.com/2shniNoeCK

— G10G (@G10G17) December 30, 2022

Japanese customers were unable to withdraw funds from their accounts after the parent company’s bankruptcy filing on November 11 as liquidity dried up, customers demanded withdrawals and rival exchange Binance ripped up its non-binding agreement to buy the company, after the red flags.

According to the law firm representing the head office, the customer’s fiat currency and crypto assets entrusted to FTX Japan are not subject to Chapter 11, considering the deposit and storage method of the assets and property rights under Japanese law.

It was also reported that FTX Japan was holding about $94.5 million in crypto assets and $46 million in fiat currency in designated client accounts. Presently, FTX Japan is up for sale alongside three other independently-operated solvent subsidiaries in the US and Europe.

The disgraced head of the once-leading cryptocurrency trading platform believed Japan was a highly regulated market with a potential market size of almost $1 trillion when it comes to cryptocurrency trading.