FTX Japanese subsidiary preparing to resume withdrawals by year end: NHK
Quick Take
- FTX Japan plans to resume customer withdrawals by the end of the year, according to Japanese broadcaster NHK.
- Withdrawals cannot be resumed immediately as FTX Japan uses the same suspended payment system as its parent company.
- The country’s Financial Services Agency ordered the exchange to suspend operations on Nov. 10.
FTX Japan plans to resume customer withdrawals by the end of the year, according to Japanese public broadcaster NHK.
Withdrawals cannot be resumed immediately as the exchange uses the same suspended payment system as its parent company FTX, said the report, citing an unnamed executive. It is now developing its own system to allow customers to withdraw assets.
The country’s Financial Services Agency ordered FTX Japan to suspend operations on Nov. 10. It held 19.6 billion yen ($138 million) in deposits at the time it ceased operations.
FTX, which filed for bankruptcy protection earlier this month, itself owes approximately $3.1 billion to creditors. As a result, it may may sell off subsidiaries including FTX Japan, NHK reported.
FTX Japan isn’t FTX’s only subsidiary facing trouble in the country. It also owns crypto exchange Liquid, which announced the suspension of withdrawals on its Liquid Global Platform on Nov. 15.
On Nov. 20 it also suspended trading on its platform on instruction of the legal team acting for FTX.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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