After its parent firm, the failing FTX exchange, approved a plan to return deposits, FTX Japan is trying to restart withdrawals. If the idea succeeds, users of the bankrupt cryptocurrency exchange in Japan might be among the first to get their funds.
Withdrawals from FTX Japan were blocked on November 8 after the exchange was forced to close by local financial authorities. Three days later, Sam Bankman-worldwide Fried’s firm, FTX Trading Ltd., filed for Chapter 11 bankruptcy protection in the United States.
FTX Japan said on its website that it was able to clarify with the company’s bankruptcy lawyers in the United States that Japanese clients’ cash “should not be included in FTX Japan’s estate given how these assets are handled and property rights under Japanese law.”
For the last two weeks, FTX Japan has been working on a strategy to resume withdrawals, which has been authorised by the FTX Trading management team.
“Development work for this plan has already started, and our engineering teams are working to allow FTX Japan users to withdraw their funds.” “As part of the plan, we are incorporating controls, security audits, reconciliations, and reviews to put in place a robust and secure process,” the notice said.
According to the notification, the subsidiary would “publish information regarding client funds housed in segregated wallets” and in a trust account every Monday. “FTX Japan intends to provide more information about the resumption of withdrawals for FTX Japan customers in the near future,” according to the announcement.
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