The FTX Japan exchange stated, “We are deeply sorry for the concern and inconvenience caused to our consumers as a result of the suspension of our services.”
The struggling cryptocurrency exchange FTX’s Japanese affiliate, FTX Japan, announced in a press statement on February 20 that users’ fiat money and cryptocurrency assets would resume being withdrawn starting at noon on February 21 via the Liquid Japan web platform.
— FTX Japan (@FTX_JP) February 20, 2023
As its parent company, FTX, and its 134 subsidiaries filed for bankruptcy in November 2022, freezing the assets of an estimated 9 million clients and locking up billions of dollars in legal disputes, FTX Japan ceased operations.
Customers who hold assets in FTX Japan accounts are required to confirm their balance and transfer those assets to their Liquid Japan accounts, according to FTX Japan. In April 2022, FTX acquired the licensed Japanese cryptocurrency asset exchange Liquid Japan. Customers of FTX Japan who do not already have a Liquid Japan account must create one in order to access their assets.
“Please be aware that the withdrawal procedure may take some time to complete due to the high volume of customer requests. As soon as feasible, we will make an announcement about the restart of other FTX Japan services.”
According to estimates, when FTX Japan stopped operating in November 2022, it had cash reserves of about 19.6 billion yen, or more than $138 million. Launched in June 2022, FTX Japan was mandated by Japanese law to keep customer funds separate from its assets.
The Financial Services Agency of Japan declared on November 10, 2022, that it had given FTX the go-ahead to cease activities, including the taking of new deposits, and to adhere to a business improvement order. The vast majority of FTX customers, including FTX US users, are still unable to withdraw their assets due to bankruptcy proceedings.