FTX Japan has officially stated that it would begin restoring client assets in February 2023. To receive lost assets, customers must set up accounts at Liquid Japan. After checking individual account balances, withdrawals will commence in mid-February. Nevertheless, the procedure may be postponed “depending on the status of the third-party security assessment.”
Mid-January will mark the beginning of a three-step procedure in which consumers will establish Liquid Japan accounts, check their balances, and begin withdrawals by mid-February. Clients of FTX Japan are likely to be the first to reclaim their lost monies after the cryptocurrency exchange leftover one customer worldwide unable to retrieve assets valued at approximately $8 billion. FTX is the owner and controller of Liquid Japan.
FTX Japan has clarified with its U.S. attorneys that Japanese clients’ money should not be included in FTX Japan’s estate due to the manner in which these cryptocurrency assets are handled and their property rights under Japanese rules.” This implies that no Japanese assets will be affected by FTX’s Chapter 11 bankruptcy procedures in the United States.
In a remark, FTX Japan apologized for the significant inconvenience caused by the lengthy termination of activities for the release of legal money and crypto assets.
Japanese consumers weren’t able to withdraw assets from their trading accounts after the cryptocurrency exchange was forced to cease operations by domestic financial authorities. Three days later, FTX’s international division filed for Chapter 11 bankruptcy in the United States. The cryptocurrency exchange’s founder and CEO were detained on December 12 in the Bahamas.
From then onwards, the Bahamian securities regulator has assumed supervision of assets exceeding $3.5 billion. The government seems to be keeping the assets until they may be delivered to creditors and prior clients.
A list of the most prominent 50 unsecured creditors of insolvent FTX revealed that the company owes more than $3 billion. According to reports, the highest unsecured creditor is due $226 million. More than $203 million is owed to the second-largest creditor by FTX.
