FTX To Allow Its Japanese Users To Withdraw Funds Beginning In February

According to a statement from the company’s Japan subsidiary, Japanese FTX users will be able to begin withdrawing funds from the defunct cryptocurrency exchange in February.

FTX Japan announced on Thursday that it was working on a system to resume withdrawals through the website of Liquid Japan, a cryptocurrency exchange it purchased earlier this year. Customers will be able to view their balance on Liquid Japan and withdraw funds.

“We deeply apologize for causing great concern and inconvenience to our customers due to the long-term suspension of the service,” the company said in a Japanese language blogpost on its website, which was translated via Google.

FTX Japan outlined a timeline for restoring customer funds, beginning with the opening of a Liquid Japan account in mid-January, followed by the transfer of assets from FTX Japan to Liquid Japan and the reopening of withdrawals by mid-February.

It comes after FTX Japan announced on December 1 that it had confirmed with FTX Group lawyers that “Japanese customer cash and crypto currency should not be included in FTX Japan’s estate given how these assets are held and property interests under Japanese law.”

Customers of FTX will be relieved by the news. Clients of FTX around the world have been unable to access their funds since the company declared bankruptcy last month and halted withdrawals.

FTX’s new interim CEO, John J. Ray III, has stated that international customers should expect less from the bankruptcy court than domestic customers.

Liquid, which was founded in 2014, was purchased by FTX in February for an undisclosed sum as part of its expansion into East Asia. Previously, it had been hacked for more than $90 million in cryptocurrency in a major cyberattack. The debt financing was provided by Sam Bankman-FTX, Fried’s which had positioned itself as a savior of beleaguered crypto firms.

Separately, the Securities Commission of The Bahamas announced on Thursday that it had seized $3.5 billion in crypto assets from FTX “for safekeeping” and was awaiting direction from the country’s Supreme Court on whether the funds should be returned to customers, creditors, or liquidators.

(Adapted from CoinDesk.com)

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