Japanese users of the defunct cryptocurrency exchange FTX may be able to withdraw their monies soon, as the Japanese subsidiary has stated that it is striving to make funds available to their customers.
On November 8, FTX as a whole ceased its withdrawal services. According to the Thursday update, the new FTX trading management team has approved the plan to resume withdrawal services for FTX Japan.
“We were able to confirm this week with the law firm representing the FTX group in the Chapter 11 bankruptcy proceedings that Japanese customer cash and cryptocurrency should not be included in FTX Japan's estate given how these assets are held and property interests under Japanese law,” FTX Japan said in a recent statement.
Furthermore, the Japanese subsidiary affirmed that its management communicates with the Japan Financial Services Authority (FSA) and the Kanto Financial Bureau on a regular basis on the current status of the withdrawal services and the ongoing bankruptcy processes.
The firm has shared the first draft of the plan with the authorities, and further conversations will take place on a regular basis as critical milestones are reached.
Actions by Japanese Authorities
Prior to the recent announcement, an unnamed FTX Japan executive told a local radio on November 21 that the company is working on resuming withdrawals by the end of the year.
The news follows the Financial Services Agency of Japan (FSA) taking administrative action against FTX Japan on November 10 after its parent business froze withdrawals without explanation.
Furthermore, the Japanese financial regulator slapped multiple orders on the exchange, including one for business suspension, one for domestic asset holding, and one for improved business operations. Because FTX experienced credit issues, the FSA ordered that over-the-counter derivatives and customer deposits be suspended.
As of November 10, when the FSA ordered it to cease operations, the company had 19.6 billion yen ($138 million) in cash and deposits.
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