FTX Japan: Work Is Underway To Enable Withdrawal Of Client Funds

Bankrupt cryptocurrency exchange FTX will allow its Japan subsidiary to resume withdrawals for its clients.

Users of the defunct FTX Japan may be among the exchange’s first customers to receive their funds.

Withdrawal services were initially halted on Nov. 8.

See Also: FTX Used Customer Funds To Make Risky Bets, Leading To Downfall

Controls, security audits, reconciliations, and reviews are all included in the plan by the crypto exchange.

FTX founder Sam Bankman-Fried's vast network of FTX group companies filed for a chaotic bankruptcy on Nov. 11.

The disgraced entrepreneur is being accused of defrauding more than a million creditors globally and causing widespread unrest in the cryptocurrency industry.

After a verification procedure, FTX Japan customer balances would be transferred to Liquid, a platform it purchased this year to increase its local presence.

About $94.5 million worth of crypto assets and $46 million worth of fiat money are currently held in designated client accounts by FTX Japan K.K.

Cash and cryptocurrency belonging to Japanese customers should not be included in FTX Japan's estate, the company claimed it had been confirmed with the law firm defending the FTX group in the Chapter 11 proceedings.

On this basis, the local unit intends to resume withdrawal service as usual, according to the statement.

The management of FTX Japan is in contact with the country's regulators and has shared the plan's initial draft, with additional consultations taking place as significant milestones are reached.

The asset-segregated wallets' private keys are always kept offline and are only under the control of the Japan operations team, the statement added.