FTX Japan will allow client withdrawals before the end of 2022 (report)

FTX Japan will allow client withdrawals before the end of 2022 (report)

Despite FTX’s ultimate crash, the company’s Japanese subsidiary reportedly intends to allow client withdrawals by the end of the year.

The Sam Bankman-Fried exchange fiasco has become one of the major events in crypto history. Once valued at around $32 billion, it recently failed to honor user withdrawal requests and reported severe liquidity issues. FTX filed for bankruptcy a few days later to “develop a process to maximize recoveries.”

FTX Japan with a solution

The Japanese branch of FTX uses the same system as its parent company, which is why it has not been able to resume client withdrawals so far.

According to recent coverage, the subsidiary is currently developing new infrastructure that will enable such transactions by the end of 2022.

FTX Japan claimed to have about 19.6 billion yen (about $138 million) in cash and deposits as of November 10. It reported no outflow of funds from overseas clients.

The platform launched its Japanese venture in June this year to boost its global presence and serve local consumers. It received all the necessary approvals from local regulators, but its operations were seriously disrupted due to the collapse of the parent company.

A brief history of the collapse

The main problems for FTX began earlier this month when Binance pledged to liquidate its entire stash of 23 million FTT tokens. Reports have started to surface that many clients are trying to withdraw their funds from FTX, which has intensified the domino effect.

Bankman-Fried (the founder of FTX) assured that the trading platform and its assets were doing “good”, but later revealed that Binance intended to acquire his organization.

After reviewing the matter, however, the world’s leading crypto exchange backed out of the deal, saying the latter’s issues are “outside our control or our ability to help.” Shortly after, SBF resigned as CEO and filed for Chapter 11 bankruptcy, which turned out to be the final nail in FTX’s coffin and sent shockwaves throughout the tech space. digital assets.

Market capitalization has fallen well below $850 billion (from $1 trillion pre-crisis). For its part, the price of bitcoin has fallen by around 25% and is currently hovering around $16,000.

The huge investment losses logically triggered a mountain of criticism towards Bankman-Fried. The new owner of Twitter and the richest man in the world – Elon Musk – said he recently had a conversation with the former CEO of FTX and did not have a good opinion.

“I talked to him for about half an hour, and I know my bullshit meter was redlining. It was like, this guy is bullshit – that was my impression,” he said.

Changpeng Zhao – CEO of Binance – urged SBF to stop posting misleading messages on Twitter and instead focus on its issues. He dismissed rumors that Binance was behind FTX’s collapse and advised Bankman-Fried to “put on a suit” and answer people’s questions.

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