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FTX Japan allows withdrawals again

FTX Japan allows withdrawals again

FTX Japan – Despite the fact that FTX, a significant crypto exchange site, has been inactive for months, there has been movement in releasing the frozen monies.

Customers of FTX Japan may now withdraw their crypto deposits and fiat money, according to an announcement made on Monday by the company’s Japanese affiliate.

The withdrawal procedure will take place via the Liquid Japan cryptocurrency trading platform, which FTX purchased in the spring of 2022.

The news

Although withdrawals were suspended in November 2022 when Sam Bankman-Fried’s crypto empire failed and filed for bankruptcy, the latest news gives FTX Japan clients some cause for optimism.

The Tokyo-based business claims that customers who qualify can withdraw their money.

By email, they were informed of the procedure.

Customers must open a Liquid Japan account and validate the balance on their FTX Japan account in order to withdraw money.

The announcement

In a blog post, FTX Japan expressed regret to its clients and provided them with information on how to withdraw their money.

“We are very sorry for the concern and inconvenience caused to our customers due to the suspension of our service,” the blog post said.

“In order to proceed with withdrawals, customers who have assets in their FTX Japan account would need to confirm the balance of their assets and transfer them to their Liquid Japan account.”

“Customers who do not have a Liquid Japan account are required to open one before they can transfer assets.”

“We have sent an email to all eligible customers regarding the details of the procedures.”

“If you have not completed the procedure, please follow the instructions in the email and complete the process.”

“Please note that due to the large number of requests from customers, it may take some time for the withdrawal process to be completed.”

“We will announce the resumption of other FTX Japan services as soon as possible.”

Read also: Chainspace creates NFT portals connecting Bitcoin and Ethereum

Japanese subsidiary

FTX Japan was one of the more recent branches when compared to other subsidiaries.

It began operations in June 2022 and lasted less than six months until the cryptocurrency exchange went down.

“Japan is a highly regulated market with a potential market size of almost $1 trillion  when it comes to cryptocurrency trading,” Sam Bankman-Fried said in June 2022.

SBF was chosen as the interim CEO when FTX Japan first went live.

Customers who utilized other FTX subsidiaries like FTX.US aren’t as fortunate as those who used FTX Japan, where the most recent advancement will allow customers to breathe.

While the international exchange is going through bankruptcy procedures in a Delaware court, other subsidiaries are still suspended.

The fall of an empire

The top cryptocurrency exchange in the market, if not the top one, was FTX.

However, the exchange’s bankruptcy filing in November 2022 shook the cryptocurrency community.

The exchange’s native cryptocurrency, FTT, had a sharp decline in price, which prompted the bankruptcy filing.

When assets began to leave FTX, it became clear that FTX was unable to maintain one-to-one reserves of client assets.

As a result, the exchange was unable to process withdrawals, which forced firm executives to declare bankruptcy.

As soon as Sam Bankman-Fried was taken into custody and accused with financial offenses like:

  • Wire fraud
  • Conspiracy to commit money laundering

Notwithstanding the weight of the evidence against him, SBF has entered a not guilty plea.

FTX progress

FTX submitted a motion in December 2022 seeking authorization for the sale of the four financially sound subsidiaries of the business, namely:

  • Embed Technologies
  • FTX Europe
  • FTX Japan
  • LedgerX

The goal of the initiative was to assist the corporation in raising capital and pay off creditors who are owed billions of dollars.

Recently, the Southern District of New York court presiding over SBF’s criminal case considered an addendum to his bail arrangement that forbade him from using devices.

He made the choice as a result of using the Signal app to communicate encrypted messages across a virtual private network.

The group in charge of FTX’s bankruptcy proceedings issued a warning last Friday about scam tokens posing as FTX customers’ debt.

“The FTX Debtors have not issued any debt token,” tweeted FTX. “Any such offers are unauthorized.”

Image source: VOI

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