FTX Japan Has Compiled A Plan To Return Customer Funds
The Japanese subsidiary of Sam Bankman-failed Fried’s cryptocurrency empire FTX has put together a draft plan for clients to withdraw funds, in what would be one of the few cases of investors receiving money back from the defunct exchange.
According to people familiar with the matter, the proposal, which has yet to be finalized, centers on using a platform called Liquid to facilitate asset returns beginning in January.
FTX Japan customer balances would be transferred to Liquid after a verification process so that users could withdraw their money. The plan would need to be approved by the country’s regulatory body. This year, FTX acquired the operator of the Liquid platform in order to expand its presence in Japan.
The Japan exchange’s branch directed inquiries to the parent company, which did not respond to an emailed request for comment. A representative from Japan’s regulatory office declined to comment.
In designated client accounts, FTX Japan K.K. currently holds approximately $94.5 million in crypto assets and $46 million in fiat currency. In contrast to other countries, Japan’s proposal is unclear how much investors will recover from bankruptcy.
There is already friction between liquidators in the Bahamas, where the global FTX operation was based, and the firm’s new Chief Executive Officer John J. Ray III, a turnaround and restructuring expert. The Bahamas regulator’s decision to seize FTX’s digital assets has been a major source of contention.
The Financial Services Agency in Japan is seeking a road map and timeline for the return of customer assets as soon as possible.
According to the draft, client withdrawals could begin as early as the week of January 9. The plan will be divided into phases that include data acquisition, authentication and data transfer, balance confirmation, distribution, and withdrawal.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu