FTX Japan Will Restore Consumer Funds

FTX branches of Japan return consumer funds both in fiat and crypto. (Photo; Doc. Bittimes)

JAKARTA The bankrupt crypto exchange company FTX is reportedly planning to return consumer funds. However, the positive plan will only be carried out by the Japanese branch of FTX.

Previously, FTX founder Sam Bankman-Fried, Gary Wang, and Alameda Research CEO Caroline Ellison were forced to face criminal charges in the US. Meanwhile, the new FTX CEO, John J. Ray III, expressed his good intentions to return consumer funds through the sale of FTX assets.

Even so, FTX Japan first revealed plans to return customer funds. The assets in FTX Japan were not affected by the bankruptcy of the central FTX due to regulations from the Japanese government. In addition, the Turkish branch of the FTX crypto exchange company has also returned their customer funds.

In an official announcement of FTX Japan on December 29 revealed a timeline and roadmap to return customer funds. Customers will be able to withdraw their crypto assets from the Liquid Japan affiliate exchange in mid-February.

According to the announcement, eligible customers for Japan's FTX returns will be notified via email with a link to open an account at Liquid Japan in mid-January. Customers who already have an account in Liquid Japan are not required to follow suit.

After that, users will be able to sign in to Liquid Japan to check their crypto assets and transfer them from FTX Japan to Liquid Japan. However, it should be noted that recall of customer funds may face delays due to security audits, incorporating controls, reconciliation, and reviews.

After transferring crypto assets to Liquid Japan, customers can easily withdraw their assets. A Japanese subsidiary will become the second subsidiary after Turkish FTX to return customer funds.

Japan's FTX executives previously claimed that a separate withdrawal system was being developed to continue customer withdrawals by the end of this year. Japan's branch is reported to have around 19.6 billion yen (138 million US dollars) in deposits as of November 10.

Meanwhile, former FTX CEO Sam Bankman-Fried is scheduled to be indicted in Manhattan federal court in the afternoon of January 3, 2023, before US District Judge Lewis Kaplan, as reported by Coingape.