The Japanese subsidiary of the embattled exchange, FTX, has finally lifted restrictions on customer withdrawals three months after it was asked by the Japanese authorities to stop.
In its latest release, the exchange “express(ed) [its] deepest apologies for the great concern and inconvenience caused to customers due to the long-term suspension of its services.” Stating further, reopening will kick off 12:00 Japan Time (3:00 GMT) and be facilitated through Liquid Japan. FTX Japan requires all customers affected and notified via mail to open a liquid Japan account and prove existing balances prior to claiming.
In defense of its liquidity position, the exchange subsidiary, which opened in June last year, disclosed that it had approximately 10 Billion Yen ($74.5 Million) in asset balances and 17.8 Billon Yen ($132 Million) worth of cash deposits. Thus was disclosed in accordance with recent Japanese laws requiring exchange companies to separate customer funds from company assets.
The move to restart withdrawals has been hailed by Japanese-based customers who believe the current bankruptcy position of its parent company should not affect their ability to undertake recoup activities given FTX Japan’s reported solvency. More than 130 subsidiaries had filed for chapter 11 bankruptcy at the Delaware court alongside FTX, heaping a staggering $3.1 billion in debt on 50 of the corporation’s top creditors, in barely a few weeks after the embattled co-founder $300 million out of a total $420 million raised from investors in the business.
During the recent crypto crash hearing, Sam and the fall of FTX were one of the major topics of discussion, prompting Congress lawmakers to advance talks about stricter regulatory controls around the sector. Ongoing legislation efforts demand strict separation of company and customer assets, customer insurance, and claim to company equity in the event of bankruptcy.
Doubling down on the ex- billionaire’s Woes, Nishad Singh, a former FTX executive and key henchman in the debacle, has come forward to possibly plead guilty to the charges levelled by the Manhattan Court. Singh is believed to have engineered the code that granted SBF a backdoor access to commingling customer funds. Singh will also shed more light on the unworthiness of Sam’s larger-than-life generosity toward politicians—90% of which were Democrats.
Plans are underway for the re-opening of the moribund exchange under its new CEO, John Ray II. FTX Japan is always thinking in that direction, as evidenced in its latest report: “we will announce the resumption of FTX Japan services as soon as possible.”