FTX Japan Reportedly To Resume Withdrawals by Year End

FTX Japan Reportedly To Resume Withdrawals by Year End
  • FTX Japan officials claimed that the company is working to resume withdrawals.
  • As of November 10th, the Japanese division has deposited around $138 million.

The Japanese branch of cryptocurrency exchange FTX Trading, FTX Japan, is working toward resuming withdrawals by the year’s end. While FTX Japan has temporarily halted withdrawals, an official there indicated on Monday that work is already underway on a new withdrawal procedure.

Also, FTX Accounts Drainer keeps transferring crypto assets out of users’ accounts, withdrawing almost $600 million. According to Japan Broadcasting Corp. on November 21st, FTX Japan officials claimed in an interview that the company is working on a way to begin withdrawals before the end of the year.

Short Sigh of Relief For Investors

Given that FTX Japan employs the same payment system as its parent business FTX, which has filed for Chapter 11 bankruptcy, withdrawals have been temporarily halted. President and CEO of FTX Sam Bankman-Fried declared bankruptcy for more than 130 of the company’s subsidiaries.

Additionally, as of November 10th, the Japanese division has deposited around 19.6 billion yen, or $138 million. However, it has not verified any foreign transfer of consumer funds. Furthermore, on November 10 the exchange was ordered to shut down by the Financial Services Agency of Japan.

The top 50 creditors are owed over $3.1 billion by FTX, as stated in the court filing. One of the creditors has a $226 million claim. Approximately one million FTX users were impacted by the outage.

The FTX Accounts Drainer keeps draining cryptocurrency from FTX and FTX US wallets, transferring the funds to Ethereum. The hacker has just begun exchanging Ethereum for renBTC, a cryptocurrency that can be converted to Bitcoin.

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