FTX Japan to Unfreeze Withdrawals of Client Funds

Hull Invest

Japanese users of failed crypto exchange FTX may soon be able to withdraw funds as Japanese subsidiary Said We are working to make funds available to our customers.

Pause across FTX Withdrawal service November 8th. According to Thursday’s update, the new FTX trade management team has approved plans to resume FTX Japan’s withdrawal services.

“This week, we asked the law firm representing FTX Group in Chapter 11 of the Bankruptcy Code how the cash and cryptocurrency of Japanese customers are held under Japanese law, and how these assets are held, as well as the property. Given how the rights are held, we were able to confirm that it should not be part of the property of FTX Japan,” FTX Japan said in a recent statement.

Additionally, the Japanese subsidiary confirmed that its management is in regular communication with the Japanese Financial Services Agency (FSA) and the Kanto Financial Bureau regarding the current status of its withdrawal services and ongoing bankruptcy proceedings. Did.

The company has shared a first draft of its plan with authorities, and further discussions will be held on a regular basis after key milestones are reached.

Actions taken by Japanese authorities

Prior to the recent statement, an unnamed FTX Japan executive spokes The company told a local broadcaster on November 21 that it was working on ways to resume the withdrawal by the end of the year.

The development came after Japan’s Financial Services Agency (FSA) took administrative action against FTX Japan on November 10.

In addition, Japanese financial regulators have imposed several orders on exchanges. One is to stop operations, another is to keep assets in the country, and the last one is to improve business practices. The FSA instructed his FTX to suspend over-the-counter derivatives and customer deposits because FTX had credit issues.

The company had 19.6 billion yen ($138 million) in cash and deposits as of Nov. 10, when the Financial Services Agency ordered the shutdown.

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