Despite the fact that it is among the 134 companies currently participating in bankruptcy proceedings by FTX, the Japanese affiliate has been working on a plan for customer cash refunds.
After it was decided that bankruptcy proceedings would not affect the assets of its customers, the Japanese subsidiary of cryptocurrency exchange FTX devised a plan for continuing to process withdrawal requests. FTX cryptocurrency trading platformSince then, ceased operation at
The company updated its clients on December 1st with a statement that it was able to certify that their assets “shouldn’t” be included in FTX Japan. Japanese regulations require that cryptocurrency exchanges keep client money apart from their own assets.
FTX Japan was not able to launch its operations even after it acquired Liquid, a Japanese cryptocurrency exchange.
This particular effort was primarily targeted at the Japanese users of the exchange.
On the other hand, withdrawals from FTX Japan were stopped on November 8, due to liquidity issues at its parent business at the start of November. It was exactly the same situation as at its parent company.
After this point, the company was added to the 134 companies that were part of the filing for chapter 11 bankruptcy. It was filed on November 11 by FTX trading.
Since then, FTX Japan stated that re-enabling withdrawals was their primary goal and that they aim to achieve this goal by 2022.
This would allow them to resume withdrawing for clients. This is especially important considering the recent clarification that assets owned by FTX Japan’s customer are not part of the company’s estate.
According to FTX Japan the company’s management continues to communicate with Japanese regulators. They have also sent the first draft to begin withdrawals. This gives the impression of ongoing interactions, “when critical milestones are achieved.”