FTX Japan Enables Customer Withdrawals Before End of 2022 (Report)

FTX Japan Enables Customer Withdrawals Before End of 2022 (Report)

Despite FTX’s eventual crash, the company’s Japanese subsidiary reportedly plans to allow customer withdrawals by the end of the year.

The Sam Bankman-Fried exchange fiasco became one of the most significant events in crypto history. Once valued at around $32 billion, it recently failed to honor users’ withdrawal requests and reported serious liquidity problems. FTX filed for bankruptcy a few days later to “develop a process to maximize recovery.”

FTX Japan with a solution

FTX’s Japanese arm uses the same system as its parent company, which has prevented it from resuming customer withdrawals until now.

According to a recent report, the subsidiary is currently developing a new infrastructure that will enable such transactions by the end of 2022.

FTX Japan claimed to have about 19.6 billion yen (about $138 million) in cash and deposits as of Nov. 10. It has not reported any outflow of client funds abroad.

The platform launched its Japanese business in June this year to bolster its global presence and serve local consumers. It received all necessary approvals from local regulators, but its operations were severely disrupted by the collapse of its parent company.

A brief history of the collapse

The biggest trouble for FTX started at the beginning of the month when Binance promised to liquidate its entire stock of 23 million FTT tokens. There were reports that many customers are trying to get their money out of FTX, amplifying the domino effect.

Bankman-Fried (the founder of FTX) assured that the trading platform and its assets are “fine”, but later revealed that Binance plans to acquire his organization.

However, after investigating the matter, the world’s leading crypto exchange backed out of the deal, claiming the latter’s issues are “beyond our control or ability to help.” Soon after, SBF resigned as CEO and filed for Chapter 11 bankruptcy, which proved to be the final nail in the coffin for FTX and sent shockwaves throughout the digital asset space.

The market cap fell well below $850 billion (compared to the $1 trillion pre-crisis). Bitcoin’s price, for its part, is down about 25% and is currently hovering around $16,000.

The enormous investment losses have logically led to a mountain of criticism of Bankman-Fried. Twitter’s new owner and the world’s richest man – Elon Musk – said he had a recent conversation with the former CEO of FTX and did not have a good opinion.

“I talked to him for about half an hour and I know my bullshit meter was on the red. It was like this guy is rubbish – that was my impression,” he said.

Binance CEO Changpeng Zhao urged SBF to stop posting misleading messages on Twitter and instead focus on its problems. He dismissed rumors that Binance was behind FTX’s collapse and advised Bankman-Fried to “put on a suit” and answer people’s questions.

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