Bankrupt Crypto Exchange FTX to Start Allowing Clients in Japan to Withdraw Funds Cryptocurrency

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FTX clients in Japan will soon be able to withdraw their funds which are currently frozen due to the bankruptcy process. Two FTX-owned crypto exchanges, FTX Japan and Liquid, are developing a system to allow withdrawals by mid-February.

Japanese FTX customers will soon be able to withdraw funds

Two FTX-owned cryptocurrency exchanges in Japan FTX Japan and Liquid jointly announced on Thursday that their users will be able to withdraw funds by mid-February. The two crypto exchanges announced:

For assets entrusted to us by our clients at FTX Japan and Liquid Japan, we are developing the system so that withdrawals are possible from the Liquid Japan website.

To withdraw funds, FTX Japan clients will need to open an account with Liquid and transfer their assets to the Liquid platform. The exchanges plan to allow withdrawals by mid-February, according to the joint announcement.

Japanese exchange Liquid was acquired by FTX earlier this year. The deal included Quoine Corp., one of the first crypto exchanges to successfully register in 2017 with Japan’s main financial regulator, the Financial Services Agency (FSA).

The acquisition follows a major hack where approximately $90 million worth of cryptocurrency was stolen from the Liquid platform. FTX then provided Liquid with $120 million in debt financing at that time.

FTX filed for bankruptcy on November 11. However, FTX Japan said on Dec. 1 that it had confirmed with FTX Group lawyers that “Japanese customer money and cryptocurrency should not be part of FTX Japan’s estate considering how these assets are owned and owned under Japanese law.

In November, the FSA issued three orders against FTX Japan: a business suspension order, a domestic asset holding order, and a business improvement order. Orders followed the exchange abruptly halting client withdrawals. The next day, FTX filed for bankruptcy in the United States. The exchange and former CEO Sam Bankman-Fried (SBF) have been charged by the US government and regulators with multiple counts of fraud.

Tags in this story ftx, FTX Bankruptcy, FTX Japan, FTX Japan Withdrawals, FTX Liquid Japan, FTX Quoine, FTX Withdrawals, Liquid Japan, Liquid Japan Withdrawals, Quoine, withdraw funds

What do you think about FTX Japan allowing customers to withdraw funds? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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