FTX Japan plans to resume withdrawals by year-end

FTX Japan plans to resume withdrawals by year-end

TL;DR Breakdown

  • FTX Japan is working to reopen customer withdrawals by the end of the year.
  • An executive of the exchange said they hold $138 million in cash and customers’ deposits.
  • Meanwhile, the Japanese exchange is expected to be sold as part of FTX’s bankruptcy proceedings.

FTX Japan, the Japanese subsidiary of Sam Bankman-Fried cryptocurrency exchange, is aiming to reopen withdrawals for local customers, according to the company’s executive interviewed by Japan’s NHK. 

FTX’s Japanese subsidiary aims to reopen withdrawals by year-end

According to reports, the Japanese exchange was ordered by the local financial regulator, the Financial Services Agency (FSA), on November 10th to suspend its activities, in consideration of the liquidity issues with the parent exchange. A day after, FTX commenced bankruptcy proceedings, naming 130 affiliate companies, including FTX Japan.

Speaking on that, the unnamed executive of FTX Japan mentioned they couldn’t process customers’ withdrawals, because the local exchange uses the same payment system as the parent exchange, which is now unsuspended. 

With about 19.6 billion yen ($138 million) in cash and customers’ crypto-assets deposits, the Japanese executive said they are working on a different payment system to reopen withdrawals. Per NHK’s report, FTX Japan is “aiming for the end of the year” to enable users to withdraw their funds from the exchange. 

Judging by the unique monthly visits to FTX, Japan is reported to be the third-largest country impacted the most by FTX’s collapse. 

FTX Japan plans to resume withdrawals by year-end 1

FTX Japan is slated for sale

The development today follows a statement on Saturday wherein the FTX’s new chief executive officer, John Ray, revealed that some of the licensed subsidiaries of the bankrupt exchange have solvent balances. 

“Based on our review over the past week, we are pleased to learn that many regulated or licensed subsidiaries of FTX, within and outside of the United States, have solvent balance sheets, responsible management and valuable franchises,” Ray said.

However, alongside other businesses listed in the bankruptcy application, FTX Japan is expected to be sold off in the coming weeks, as the attorneys “explore sales, recapitalizations or other strategic transactions” in the proceedings.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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