Last Updated: 30 December 2022
The Japanese subsidiary of bankrupt FTX is going to return balances to customers.
— DailyCrypto (@DailyCrypto_t) December 30, 2022
The company announces this in a statement on its website. It will allow users of the exchange to access deposits again from mid-February. A timeline has been established to manage the withdrawal process.
With that, Japanese customers are getting away with it. Sam Bankman-Fried’s parent company FTX has a gaping billion-dollar hole on its balance sheet. As a result, it stopped withdrawals on the platform and filed for bankruptcy protection. Subsidiary FTX Japan fared better.
Earlier, it appeared that new CEO John Ray III wanted to sell a number of subsidiaries. One of these was FTX Japan and given that this company is still worth something, its sale could help restructure the parent company.
According to earlier reports, interested parties can submit bids in FTX Japan’s auction between 1 February and 15 March.
FTX Japan shares that it is developing systems that allow its customers to withdraw their assets through Liquid Japan’s website. Early this year, Liquid was bought by FTX to gain a greater foothold in Japan.
It involves a step-by-step system that requires customers to create an account with Liquid Japan, and then check balances before being able to take the money into their own hands later in February.
FTX Japan has about $94.5 million in crypto currency and $46 million in fiat currency under management for customers.
Meanwhile, crypto exchange Kraken is taking a step back in the Asian country. Reason is the ongoing bitcoin winter with low prices and ditto trading volumes. Last month, the San Francisco-based exchange had to announce a hefty cost-cutting exercise: 30% of staff will be laid off.