FTX Japan resumes withdrawals after six months, details inside

• FTX Japan announced that the withdrawal of users’ fiat currency and crypto assets would begin on the Liquid Japan web platform.
• Most FTX US users could not withdraw their assets due to bankruptcy proceedings.

On 20 February, FTX Japan, the Japanese subsidiary of the cryptocurrency exchange FTX, announced via a press release that the withdrawal of users’ fiat currency and crypto assets would begin at 12:00 p.m. on the Liquid Japan web platform.

FTX Japan ceased operations in November 2022 after its parent company, FTX, filed for bankruptcy along with its 134 subsidiaries, freezing the assets of about nine million customers and locking billions of dollars in legal proceedings.

In a blog post, FTX Japan stated:

“We would like to express our deepest apologies.”

Before adding:

“The bankruptcy of our parent company […] has had a wide range of impacts, and we have had to wait for a long time to resume operations.”

Customers who have assets in FTX Japan accounts must confirm their balance and transfer them to their Liquid Japan account, the press release mentioned. FTX acquired Liquid Japan, a licensed Japanese crypto asset exchange, in April 2022. Customers who do not already have a Liquid Japan account must open one before receiving their assets from FTX Japan.

The withdrawal process may become slowed if many customers submit requests at the same time, according to FTX Japan.

FTX Japan collapsed within six months of debuting

When FTX Japan ceased operations in November 2022, it had approximately 19.6 billion yen in cash, which was worth more than $138 million. FTX Japan debuted in June 2022, it was required by Japanese law to separate client funds from its assets.

The Financial Services Agency of Japan announced on 10 November 2022 that it had ordered FTX to suspend business operations, such as accepting new deposits and complying with a business improvement order.

The vast majority of FTX customers, including FTX US users, were unable to withdraw their assets at press time, due to FTX’s bankruptcy proceedings.