On February 21, three months since FTX filed for chapter 11 bankruptcy protection, FTX Japan will restart (1) fiat currency and crypto asset withdrawal via the Liquid Japan web platform. This comes after FTX and Alameda filed for protection under chapter 11.
The statement comes when Bitcoin tests the resistance level of $25,000, $4,000 more than the mark it was trading at before FTX. Because of this, the value of the assets owned by FTX has increased, and the company now has more liquid assets to pay its clients.
Customers who have assets stored in their FTX Japan accounts were asked to verify the current balance of those assets and move them to their Liquid Japan accounts. Customers of FTX Japan who still need to get a Liquid Japan account need to sign up for one to complete the asset transfer process.
The business disclosed to its customers who were qualified for the refund that an email was sent explaining the procedure. However, due to the enormous requests, the corporation has indicated that the withdrawal procedure may take longer than anticipated.
As a direct consequence, FTX Japan advised its customers to exercise patience because all eligible withdrawal requests will be honored.
Because of the suspension of our services, “we are extremely sorry for the worry, and trouble given to our customers,” FTX Japan stated.
FTX Japan has stated that the resumption of other services, such as trading and asset exchanges, will be revealed very soon. This comes while the parent business is going through the process of legally reforming itself.
The Larger Picture
Traders of cryptocurrencies worldwide will have a higher level of confidence in the long-term viability of decentralized financial systems and digital assets, according to the top ranking. Importantly, the reputation of cryptocurrencies took a significant hit with the failures of FTX and Alameda at the tail end of last year.
In addition, over one million clients worldwide and over one hundred institutional investors, including foreign government organizations, were impacted.
However, since the FTX and Alameda’s balance sheet is missing more than $8 billion, certain overseas customers would have to wait even longer for the restructuring to get them back to their original state.
Meanwhile, the interim CEO of FTX, John Ray, has warned that the company may be obliged to reopen the trading platform to raise additional cash flow to cover the obligations owed by consumers and investors.
During this time, the previous CEO of FTX, SBF, will calculate lesser sentences as normal activities restart at the Japan business. When operations were terminated in November 2022, FTX Japan had 19.6 billion yen in cash, equivalent to more than $138 million.
FTX Japan was instructed to separate customer funds from the company’s assets per the regulations of Japan, which the country’s Financial Services Administration enforces. As a direct consequence, FTX Japan customers were not significantly impacted by the dissolution of the parent firm.
