FTX Japan to Unfreeze Withdrawals of Client Funds

FTX Japan to Unfreeze Withdrawals of Client Funds

FTX’s new business management team has approved the plan to resume withdrawal services, the Japanese subsidiary announced on Thursday. Resources available to your customers. FTX suspended its withdrawal services in November. The new FTX business management team has approved the plan to resume withdrawal services for FTX Japan per Thursday’s Update.

“This week, we were able to confirm to the law firm representing the FTX Group in its Chapter 11 bankruptcy proceedings that cash and cryptocurrencies of Japanese customers are not part of the assets of, given the nature of those assets and ownership interests, FTX Japan should be held under Japanese law,” FTX Japan said in a recent statement. In addition, the Japanese subsidiary confirmed that its management is in regular contact with the Japan Financial Services Authority (FSA) and the Kanto Financial Office regarding the current situation with withdrawal services and ongoing bankruptcy proceedings. The company has submitted the plan’s first draft to the authorities, and further consultations will occur regularly as important milestones are reached.

Actions by Japanese Authorities

Before the latest statement, an unnamed FTX Japan executive spoke to a local broadcaster on November 21 and said the company was working on ways to resume payouts by the end of the year. The development comes after the Japan Financial Services Agency (FSA) took administrative action against FTX Japan on November 10 after its parent company halted withdrawals without any explanation. In addition, Japan’s financial regulator placed several orders on the exchange: one to suspend trading, another to keep assets domestic, and the last to improve trading practices. As FTX faced credit problems, the FSA ordered the company to suspend OTC derivatives and customer deposits.

On 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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