FTX Japan is attempting to resume withdrawals after its parent company, the failed FTX exchange, approved return deposits.
If the idea works, users of the collapsed cryptocurrency exchange in Japan could be among the first to receive their funds.
Withdrawals from FTX Japan were blocked on November 8 after the exchange was ordered to close by local financial regulators. Three days later, Sam Bankman- Fried global firm, FTX Trading Ltd., filed for Chapter 11 bankruptcy protection in the United States.
FTX Japan stated on its website that it was able to confirm with the company’s bankruptcy lawyers in the United States that Japanese clients’ funds “should not be included in FTX Japan’s estate given how these assets are handled and property interests under Japanese law.”
For the past two weeks, FTX Japan has been working on a plan to resume withdrawals, which has been approved by the FTX Trading management team.
“Work on this strategy has already begun, and our engineering teams are working to allow FTX Japan users to withdraw their funds. We are implementing controls, security audits, reconciliations, & reviews as part of the goal to robust & secure process “The notice said
The notification states that the subsidiary will “publish information regarding customer assets held in segregated wallets” and in a trust account each Monday.
The message stated that “FTX Japan hopes to publish additional information regarding the resume of withdrawals for FTX Japan subscribers in the short order.”
