FTX Japan Allows Users To Withdraw Funds From The Exchange

FTX branches of Japan will open withdrawals of consumer funds. (Photo; Doc. Arover)

JAKARTA - A bankrupt crypto trading company, FTX, has a number of branches in other countries including Japan. According to reports, FTX Japan plans to reactivate their user withdrawal (withdrawal). The company said it was working to enable customer funds.

Previously, FTX as a whole had suspended its recall service on November 8. The new FTX trading management team has approved plans to resume withdrawal services for Japan's FTX, according to an update on Thursday.

"This week, we can confirm with law firms representing the FTX group in the bankruptcy process Chapter 11 that Japanese customers' cash and cryptocurrencies should not be part of Japan's FTX plantation given how these assets are held and property interests under Japanese law," FTX Japan said in a statement recently.

In addition, a Japanese subsidiary confirmed that its management is regularly in contact with the Japan Financial Services Authority (FSA) and Kanto's Bureau of Finance regarding the current situation with the ongoing bankruptcy withdrawal and process service.

The company has shared the first draft plan with the authorities. They will also conduct further consultations regularly after reaching an important milestone.

Prior to a recent statement, an unnamed Japanese FTX executive spoke to local broadcasters on November 21 and said the company was seeking ways to continue withdrawals by the end of the year.

This development came after Japan's Financial Services Agency (FSA) took administrative action against Japan's FTX on November 10 after its parent company stopped the withdrawal without any explanation.

In addition, Japan's financial regulator imposed several orders on the exchange - one for business suspension, one for holding domestic assets, and the last to improve business practices. Since FTX has credit problems, the FSA has instructed the company to suspend over-the-counter derivatives and customer deposits.

The company had 19.6 billion yen (138 million US dollars) in cash and deposits on November 10, when the FSA ordered to suspend operations.

FTX is a leading crypto trading company that filed for bankruptcy protection on November 11. Shortly after, FTX founder and CEO Sam Bankman-Fried resigned from office. The leadership chair was later held by John J. Ray III.