- FTX Japan announced that users will start withdrawing fiat currency and crypto assets on the Liquid Japan web platform.
- Most FTX US users were unable to withdraw their assets due to bankruptcy proceedings.
On February 20, ftx The Japanese subsidiary of cryptocurrency exchange FTX announced through a Press release Withdrawals of fiat currency and crypto assets from users will begin at 12:00 noon on the Liquid Japan web platform.
FTX Japan filed for bankruptcy in November 2022 after its parent company, FTX, along with its 134 subsidiaries, froze the assets of nearly nine million customers and locked up billions of dollars in legal proceedings.
In a blog post, FTX Japan said:
“We want to express our deepest apologies.”
“The bankruptcy of our parent (…) has had very varied effects, and we have had to wait a long time to resume operations.”
Clients who have assets in FTX Japan accounts are required to check their balances and transfer them to their Liquid Japan accounts, the press release noted. FTX acquired Liquid Japan, a licensed Japanese crypto-asset exchange, in April 2022. Clients who do not already have a Liquid Japan account will need to open one before receiving their assets from FTX Japan.
According to FTX Japan, withdrawals can be processed slowly if many customers submit requests at the same time.
FTX Japan collapses within six months of debut
When FTX Japan ceases operations in November 2022, it had approximately ¥19.6 billion in cash, worth more than $138 million. FTX Japan launched in June 2022, Japanese law requires client funds to be segregated from their own assets.
The Japan Financial Services Agency announced on November 10, 2022 that it had ordered FTX to suspend business operations, such as accepting new deposits, and to comply with the Business Reform Order.
Due to FTX’s bankruptcy process, most of FTX’s clients, including FTX US users, were unable to withdraw their assets at press time.