Sunday 29 January 2023
Home / none / FTX Japan drafts plan to return client funds

FTX Japan drafts plan to return client funds

The Japanese subsidiary of the now-defunct FTX crypto exchange has come out with a roadmap to resume withdrawals after confirming that its customers’ assets are not part of FTX’s bankruptcy proceedings.

The firm provided an update on Dec. 1, stating it has been able to confirm that its customers’ assets “should not” be part of FTX Japan’s estate due to Japanese regulations, which mandate that crypto exchanges must separate client funds from their own assets.

This was according to Landis Rath & Cobb LLP, the law firm representing FTX Group in the Chapter 11 bankruptcy proceedings.

FTX Japan was only launched in June this year after acquiring Japanese crypto exchange Liquid on Feb. 2. It was aimed at serving the exchange’s Japanese customers.

However, with liquidity issues experienced by its parent company in early November, withdrawals were halted at FTX Japan on Nov. 8, similar to its parent company.

Days later, the Financial Services Agency of Japan announced on Nov. 10 it had taken administrative action against FTX Japan and ordered it to suspend other business operations such as accepting new deposits and to comply with a business improvement order.

The company was then listed as one of the 134 companies that formed part of FTX Trading’s Chapter 11 bankruptcy filing on Nov. 11.

Since then, FTX Japan has claimed its primary focus is to re-enable withdrawals and is reportedly aiming to do so by the end of 2022.

Related: US Senate committee hearing on FTX fail brings gaps in regulatory authority to light

With the recent confirmation that its users’ assets are not considered part of FTX Japan’s estate, this would effectively provide them with a pathway to resume withdrawals for its users.

“Japanese customer cash and crypto currency should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law,” the firm noted.

FTX Japan said its management is in regular dialogue with Japanese regulators and has sent through the first draft of their plan to resume withdrawals, suggesting regular consultations will occur “as key milestones are met.”

Original Article

About Jude Savage

Check Also

Solana price rally risks exhaustion after SOL’s 120% pump in two weeks

Solana (SOL) price is up an impressive 60% since the new year, partially boosted by hype surrounding meme cryptocurrency Bonk (BONK). However, the SOL/USD pair now shows signs of exhaustion, raising anticipations that the token may see a short-term correction in the coming days. Solana turns overboughtSolana is one of the best performing cryptocurrencies so far in 2023 after being one of the biggest losers in 2022. On Jan. 9, SOL's price jumped to as high as $19.50, or around 120% gains in a recovery rally after sliding below $8 on Dec. 29, 2022. But the price spik also turned Solana into an overbought asset, per its daily relative strength index (RSI) reading above 70, as shown below. SOL/USD daily price chart. Source: TradingViewTraditional investors typically see an overbought RSI as a potential sell signal, given the indicator has historically coincided with a period of buyer exhaustion. As a result, SOL's price could enter a correction or a sideways consolidation stag..

Leave a Reply

Your email address will not be published. Required fields are marked *