Restructuring at FTX Japan: Clients Hope to Get Their Money Back
Customers from the Bahamian were able to remove whatever bitcoins they held on the FTX platform as soon as the exchange began to fail due to a feature known as “separation of property.” A few days ago, Sam Bankman-Fried declared that FTX.US would once again be accepting withdrawals. Will clients of FTX Japan be the next to get their monies returned to them?
FTX Japan has devised a strategy for the resumption of withdrawals.
In the month of December of the previous year, FTX’s Japanese subsidiary posted an update on their website. According to the corporation, the holdings of Japanese customers “should not be part of FTX Japan’s assets.” In accordance with the legislation of the country, cryptocurrency exchanges are required to keep customer funds separate from their own.
In addition, the business disclosed that it is working on a strategy to enable withdrawals to restart as soon as possible. This strategy, which was conceived over the course of the previous two weeks, was purportedly presented to the new management team at FTX Trading, who would have given their blessing to its implementation. Additionally, a first draught of the plan would have been provided to the Japanese authorities, who would have been in frequent conversation with the management of the company.
FTX Trading brought FTX Japan down with it when it went bankrupt.
In spite of this positive prognosis for Japanese consumers, the process for restarting withdrawals would not necessarily be a simple one. In point of fact, the bankruptcy petition that FTX Trading submitted on November 8 names 134 different entities, including FTX Japan.
Two days later, on November 10, the Financial Services Agency of Japan issued an order to FTX Japan instructing the company to temporarily halt certain trading operations, one of which was the acceptance of fresh deposits. Additionally, the cryptocurrency exchange is required to comply with a directive in order to enhance its operations.
Since the failure of its parent firm, which was responsible for dragging it down its road, FTX Japan had declared that reactivating withdrawals was its primary goal, and it has since succeeded in doing so. A cryptocurrency exchange has expressed a desire to resume processing withdrawal requests before the end of the year.
Were the customers effectively protected by the local regulations? You should not put your trust on Sam Bankman-Fried to deliver lucid responses to this query due to the fact that the former CEO of FTX currently has a poor recall.
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