FTX Japan Plans To Repay Users in February of Next Year

  • Liquid Japan is a crypto trading platform that was recently bought by FTX Trading Ltd.
  • FTX Trading filed for Chapter 11 bankruptcy earlier last month.

In a statement released on Thursday, the Japanese branch of defunct cryptocurrency exchange FTX said it plans to begin repaying client holdings in February 2023.

Liquid Japan is a cryptocurrency trading platform that was recently bought by FTX Trading Ltd in an undisclosed agreement, and FTX Japan has announced that it is creating mechanisms to allow its clients to withdraw their holdings through Liquid Japan. Midway through January, consumers will be able to establish Liquid Japan accounts, view their balances, and begin making withdrawals.

Protracted Suspension of Services

In a statement issued yesterday, the subsidiary expressed deep regret for the significant disruption caused by the protracted suspension of services for the withdrawal of fiat cash and crypto assets.

When FTX Trading filed for Chapter 11 bankruptcy earlier last month, the Japanese business stated it clarified with the legal firm representing FTX Trading that the cash and cryptocurrency holdings of Japanese clients “should not be part of FTX Japan’s estate.”

Moreover, the crypto exchange’s new management, led by John Ray III, has also filed a motion with the Bankruptcy Court of Delaware requesting approval of bidding processes for four of the firm’s independent solvent subsidiaries in the United States, Japan, and Europe.

Approximately $94.5 million in crypto assets and $46 million in fiat money were said to be stored in separate customer accounts at FTX Japan. When FTX’s parent firm went down, FTX Japan had only been open for around six months. Sam Bankman-Fried was named temporary CEO when the company began in June.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.