By
Chimamanda U. Martha
April 19th, 2024
FTX Japan has noted that the resumption of other services, including trading and asset swaps, will be announced soon.
Three months after FTX and Alameda filed for chapter 11 bankruptcy protection, FTX Japan, via the Liquid Japan web platform, will resume withdrawals of fiat currency and crypto assets on February 21. The announcement comes as Bitcoin pushes the $25k resistance level, $4,000 higher than the pre-FTX trading mark. As a result, the FTX-held assets have gained in value, and the company has more liquidity to pay the customers.
Notably, customers who have assets in their FTX Japan account have been asked to confirm their assets’ balance and transfer them to their Liquid Japan account. Otherwise, FTX Japan customers who do not have a Liquid Japan account must open one before they can transfer assets.
The company announced that all eligible customers had been emailed detailing the withdrawal process. However, the company announced that the withdrawal process might take longer to complete due to a large number of requests. As a result, FTX Japan indicated that customers should be patient since all the eligible withdrawals will be honored.
“We are very sorry for the concern and inconvenience caused to our customers due to the suspension of our services,” FTX Japan noted.
As the parent company goes through a legal restructuring process, FTX Japan has noted that the resumption of other services, including trading and asset swaps, will be announced soon.
Bigger Picture of FTX Japan Withdrawals Resumption
On the top list, global cryptocurrency traders will have more confidence in the long-term success of digital assets and decentralized financial platforms. Notably, the crypto reputation was severely damaged after FTX and Alameda collapsed late last year. Moreover, over 1 million global customers were affected, and over 100 institutional investors, including international government agencies.
However, with over $8 billion missing from the FTX and Alameda’s balance sheet, some international customers may have to wait longer for the restructuring process to make them whole again. Furthermore, interim FTX CEO John Ray has indicated that the company may be forced to reopen trading services in order to raise more cash flow to repay customers’ and investors’ debts.
Meanwhile, former FTX CEO SBF will be counting reduced charges as the Japan entity resumes normal operations. Notably, FTX Japan had roughly 19.6 billion yen in cash worth more than $138 million when it ceased operations in November 2022. Due to the Japanese laws enforced by the country’s Financial Services Agency, FTX Japan had been ordered to segregate client funds from its assets. As a result, the FTX Japan customers were not severely impacted by the parent’s company dissolution.