According to a press release dated February 20, FTX Japan, the Japanese affiliate of struggling cryptocurrency exchange FTX, announced that users’ fiat dollars and crypto assets could be withdrawn via the Liquid Japan web platform beginning at 12:00 p.m. on February 21.
The announcement fulfills a December pledge made by the FTX Japan wing, whose assets in the country were mainly protected by Japanese law.
Due to the large number of requests from customers, it may take some time for the withdrawal process to be completed […] We will announce the resumption of other FTX Japan services as soon as possible.FTX japan
FTX Japan customers set to begin withdrawals
FTX Japan ceased operations in November 2022 when its parent company, FTX, and its 134 subsidiaries filed for bankruptcy, locking the assets of an estimated 9 million consumers and billions of dollars trapped in legal procedures.
Along with FTX Europe, FTX Japan has been designated for an early sale as the estate strives to recuperate assets. According to FTX Japan, clients with assets in its accounts must confirm their balances and transfer them to their Liquid Japan accounts.
FTX bought the licensed Japanese crypto asset exchange Liquid Japan in April 2022. Prior to obtaining their assets, FTX Japan customers who do not have a Liquid Japan account need to acquire one.
Please note that due to the large number of requests from customers, it may take some time for the withdrawal process to be completed. We will announce the resumption of other FTX Japan services as soon as possible.FTX Japan
When it halted operations in November 2022, the Japan arm had approximately 19.6 billion yen in cash, which was worth more than $138 million, according to reports. Launched in June 2022, FTX Japan was required by Japanese law to separate customer funds from its assets.
The Financial Services Agency of Japan announced on November 10, 2022, that it had ordered FTX to cease business operations, including the acceptance of new deposits, and to comply with a business improvement order. The vast majority of FTX clients, including FTX US users, are still unable to withdraw their assets due to bankruptcy proceedings.
FTT surges more than 28%
Clients are needed to have a Liquid Japan account in order to move assets out of their FTX accounts. This is possible once the customer has confirmed their balance. Due to the high volume of withdrawal requests, FTX Japan acknowledged that there may be some delays throughout the withdrawal process.
In contrast, FTX bankruptcy claims are currently being traded on private over-the-counter exchanges. These claims are being sold for as little as 15 to 20 cents per dollar. Prior public accounts similarly assessed FTX’s troubled assets at 16 cents on the dollar, at 16 cents per dollar.
FTT pricing reacted to the announcement that FTX’s Japan branch resumed withdrawals. The trading price of the altcoin experienced a significant increase as FTT rose from $1.592 to $2.
During intraday trading hours, the price of the cryptocurrency increased by over 28%, virtually recouping the 25% losses from earlier in the month. At the time of writing, the cryptocurrency was trading at $1.744, indicating that the gain was brief.