FTX Japan plans to resume payouts as early as February: report
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The subsidiary of bankrupt cryptocurrency exchange FTX in Japan, FTX Japan, reportedly plans to resume withdrawals for affected users as early as February.
According to a Feb. 17 report by Bloomberg, FTX Japan sent out notifications asking users to check their account balances as part of the process in order to allow withdrawals. Seth Melamed, the exchange’s chief operating officer, reportedly said users could transfer assets to accounts on FTX’s proprietary Liquid Global platform, with withdrawals expected to start “very soon.”
“We are confident that we will stick to the schedule,” said Melamed.
The schedule for withdrawals to resume for all FTX Japan and Liquid Japan users is scheduled for February. @FTX_JP
— Seth Melamed (@coo_ftxjp) February 3, 2023
FTX Group filed for Chapter 11 bankruptcy in the United States in November 2022, a move that included three of the company’s 134 subsidiaries: FTX Japan Holdings, FTX Japan and FTX Japan Services. However, Japan’s Financial Services Authority (FSA) had asked FTX Japan to suspend business orders ahead of the US bankruptcy filing.
Following an FSA order, FTX Japan filed a plan in December 2022 to try to resume user withdrawals. The plan proposed that FTX Japan’s client funds should not be part of the firm’s bankruptcy proceedings – essentially citing regulations that exchange client funds separate from their own.
Related: FTX wants permission to sell FTX Japan and FTX Europe as well as LedgerX
NHK news agency reported that FTX Japan had around 19.6 billion yen in cash — more than $138 million at the time — when it ceased operations in November. In contrast, FTX debtors have reportedly recovered more than $5 billion in cash and crypto through January.
