FTX Japan had cautioned customers that withdrawal processes might take longer due to simultaneous requests.
After three months of excruciating patience, FTX Japan Co LTD users a sigh of relief after the company processed approximately $50 million in withdrawals since February 21. The FTX subsidiary in Japan froze about $138 million of users’ funds after the parent company filed for chapter 11 bankruptcy protection in the United States. However, the Japan subsidiary recently announced that users need to confirm their balances in their Liquid Japan account to facilitate withdrawal transactions.
Notably, FTX Japan customers who do not have Liquid Japan accounts must open an account a day before transferring the assets from the exchange. As a result, the company announced that about 7,026 account holders had moved funds from FTX Japan to Liquid at reporting time. Reportedly, 5,697 transactions involving cryptocurrencies and 1,947 instances of users withdrawing fiat.
The company has, however, cautioned customers that withdrawal processes might take longer due to a large number of requests at the same time. As such, the company advised traders to be patient with the process and will soon announce the resumption of trading services.
“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,” FTX Japan previously noted.
Bigger Picture of FTX Japan Resumption of Withdrawals
The resumption of asset withdrawal services at FTX Japan is a massive welcome to other FTX global users who do not have access to their cash up to date. With over $8 billion missing from the FTX balance sheet, hundreds of thousands of clients will have to wait longer before being made whole again.
Moreover, interim FTX CEO John Ray III previously indicated that the company might have to reopen trading services to raise the $8 billion. Meanwhile, Ray noted that FTX creditors might be issued with shares package of the new company. Nonetheless, the move has not been approved by the bankruptcy restructuring court.
Mind you, the Judge at the US Bankruptcy Court for the District of Delaware denied a motion to appoint an independent examiner, citing the expense involved.
The cryptocurrency market has grown to a trillion-dollar industry, but not without hundreds of billions being wiped out through rug pulls and network attacks. According to cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN), over $1.5 trillion was liquidated from the cryptocurrency market in 2022.
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