FTX Japan Plans to Resume Customer Withdrawals by Year-End: Report
FTX Japan, the Japanese subsidiary of now-bankrupt cryptocurrency exchange FTX, is reportedly planning to refinance by the end of the year. An unnamed Japanese FTX official speaking to a local broadcaster on November 21 revealed that the company is busy figuring out how to resume withdrawals before the end of the year. The development comes after the Financial Services Agency of Japan (FSA) took administrative action against FTX Japan on November 10 because its parent company suspended withdrawals without a clear explanation to investors.
in accordance with a report from Japanese news website NHK, an FTX Japan official said that its customers are currently unable to export goods because the FTX Japan system is connected to the wider FTX system. To address this issue, FTX Japan is developing a separate system for its customers to withdraw their funds.
So FTX Japan will develop its system, which will allow customers to withdraw. The company held about 19.6 billion yen ($138 million or about Rs. 1,120 crore) in cash and deposits as of November 10, when Japan’s Financial Services Agency (FSA) asked the exchange to suspend operations. .
This upgrade comes after 48 hours. FTX announcement to sell and restructure some of its companies to recoup funds to restore user assets. FTX Japan is also expected to be one of those companies, although no confirmation of the same has been received.
This move by FTX will be of particular benefit to creditors, whose previous court papers are reported to be over one million. According to some court filings, the top 50 of these creditors alone owe around $3.1 billion (roughly Rs. 25,166 crore).
Japan’s financial regulator has issued several orders to the exchange – one for business suspension, one for domestic storage, and one for business development. The FSA ordered the company to stop over-the-counter transactions and accepting customer deposits, as FTX had credit problems.
“Under these circumstances, there have been reports that FTX Trading Limited is facing credit uncertainty. It is necessary to take all possible measures to prevent a situation where the interests of creditors and investors are harmed by the outflow of funds from the Company’s subsidiaries,” ” the administrator wrote on November 10.
On November 11, FTX Group, along with 130 affiliated entities, filed for Chapter 11 bankruptcy protection after failing to raise capital. Since then, customers have not been able to withdraw assets as bankruptcy proceedings continue.
