- FTX Japan plans to resume withdrawals from February 2023.
- The firm will require its customers to open an account with Liquid Japan in January.
- Previously, authorities gave FTX Japan three month ultimatum to finish withdrawal issues.
According to an official document, the Japanese subsidiary of the now-bankrupt crypto exchange FTX is developing a roadmap towards returning customer assets from February next year.
The roadmap comprises a three-step process that will see customers open Liquid Japan accounts by mid-January, followed by balance checks and the opening of withdrawals in mid-February.
The statement read in part:
Customers eligible for FTX Japan returns will be sent an email with a link to open a Liquid Japan account. You will be able to log in to Liquid Japan to check your balance and transfer assets from FTX Japan to Liquid Japan.
Early this month, local regulators gave the Japanese affiliate of FTX permission to work through withdrawal-related problems until 2023. The Kanto Local Finance Bureau, therefore, extended the business suspension order to FTX Japan until March next year.
Japan FTX’s administrative disposition was initially supposed to end on December 9, 2022. However, the authorities gave the additional three months’ extension due to the inability of customers to withdraw their crypto assets in FTX’s custody.
Notably, FTX Japan came to life barely seven months ago as FTX acquired the Japanese crypto exchange Liquid. The Japanese subsidiary is one of 134 companies caught up in FTX’s bankruptcy proceedings.
In a related development, a recent press release by the Securities Commission of the Bahamas showed that the regulator has been holding more than $3.5 billion in FTX customer assets since November 12.
The regulator cited security concerns as the primary reason for the decision to seize custody of the money after $370 million and $400 million in crypto assets were stolen from the exchange’s wallets hours after it filed for bankruptcy protection.
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