FTX Japan To Reenable Withdrawals, Other Subsidiaries Will Follow?

FTX Japan has announced through a blog post that they will resume withdrawals of fiat currency and crypto assets for their customers. According to the statement, the Japan-based subsidiary will allow customers to withdraw their funds starting February 21. 

As announced by the FTX subsidiary in late December, customers can only withdraw their funds through an account at Liquid Japan, a crypto exchange licensed under the Japanese payment service that FTX acquired in February 2022. 

To proceed with withdrawals, customers who have funds in their FTX Japan account would need to confirm the balance of their funds and transfer them to their Liquid Japan account. Clients who do not have a Liquid Japan account will need to open one before transferring assets.

In addition, the FTX Japan subsidiary stated that it is sending emails to eligible customers regarding the details of the process and the steps to follow to withdraw their funds. Given the large number of customer requests, the process may take an unknown amount of time to complete. FTX Japan concluded:

Please note that due to the large number of requests from customers, it may take some time for the withdrawal process to be completed. We will announce the resumption of other FTX Japan services as soon as possible.

Following the FTX debacle in November 2022, FTX Japan has delayed withdrawals of crypto assets and fiat currencies. Customers of the failed crypto exchange FTX have been unable to access their funds worldwide since the company and its trading arm, Alameda Research, filed for bankruptcy and halted customer withdrawals.

Will Other FTX Subsidiaries Reinstate Withdrawals?

The failed crypto exchange FTX, once valued at over $32 billion and with over a million customers, appointed John J. Ray III as the new CEO to recover the liquid assets, including cash, crypto, and securities. However, many of FTX’s customers are wondering how much or if any of their money will be returned. 

The exact duration of the bankruptcy process remains uncertain. Still, it could take several years for traders and customers of the failed exchange’s services to receive answers regarding the lost funds. 

FTX Japan may set an example for other FTX subsidiaries regarding customer withdrawals. In the meantime, FTX investors worldwide can only wait for more news from the failed exchange and its new management.

Bitcoin continues to attempt an upside breakout facing a significant resistance zone at $25,000. BTC is trading at $24,850 at press time, with a gain in the last 24 hours of 1.3%. In the seven-day time frame, Bitcoin has managed to profit by 14.1%, and in the previous 30 days, Bitcoin is up by 9.4%, with expectations to climb higher to $27,000 as the next resistance target.

Featured image from Unsplash, a chart from TradingView.