Bankrupt Crypto Exchange FTX to Start Letting Customers in Japan Withdraw Funds – FTX Japan and Liquid, two Japanese cryptocurrency exchanges owned by FTX, announced Thursday that users would be able to withdraw cash by mid-February. The two crypto exchanges announced: “For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that withdrawals will be possible from the Liquid Japan website.”
Customers of FTX Japan must register an account with Liquid and move their assets to the Liquid platform in order to withdraw funds. According to the joint release, the exchanges want to enable withdrawals by mid-February. FTX acquired the Japanese exchange Liquid earlier this year. The transaction involved Quoine Corp., one of the first cryptocurrency exchanges to register with Japan’s main financial regulator, the Financial Services Agency, in 2017.
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Following a catastrophic hack in which over $90 million worth of cryptocurrencies were stolen from the Liquid platform, the company was acquired. Then, FTX gave 120 million dollars in debt funding to Liquid. FTX declared bankruptcy on November 11. However, FTX Japan announced on December 1 that it had confirmed with the FTX group’s legal counsel that “Japanese customer cash and cryptocurrency should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law.”
The FSA issued three orders against FTX Japan during the month of November: a business suspension order, an order to hold assets domestically, and a business improvement order. After the exchange unexpectedly halted customer withdrawals, the orders were placed. The next day, FTX filed for bankruptcy in the United States. The U.S. government and regulators have charged the exchange and its former CEO, Sam Bankman-Fried (SBF), with many charges of fraud.
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