FTX Japanese subsidiary has come close to its goal of unlocking its users’ trapped funds.
The bankrupt company told customers on Friday that they can now confirm their balances on the platform, as part of a plan to compensate customers at the end of the month.
One step closer to compensation
In addition to viewing their balances, users have been notified that they can migrate their assets to the Japanese cryptocurrency exchange platform, Liquid. The firm received $120 million from FTX after a hack in 2021, and was later bought by the exchange in 2022.
The newly provided access is part of a timeline Announced in December that would allow clients to withdraw their funds from the defunct exchange at the end of the month. In a statement to Bloomberg, Liquid’s COO Seth Melamed said the team is “confident” it will “adhere to this schedule and that customer withdrawals will resume “very soon.”
However, you cannot open access to user accounts until you receive appropriate approvals as well as sufficient data related to account migration.
“Our team often works seven days a week, late into the night,” Melamed said. “Re-enabling withdrawals at FTX Japan in a transparent, fair and accurate manner has been a shared goal for our entire team.”
FTX Japan’s net assets at the end of September totaled approximately 10 billion yen ($74.3 million) at the end of September, a mere fraction of the billions of dollars in assets lying at the main FTX branch last month. Court filings show that at least 41 parties have expressed interest in buying FTX Japan.
The FTX US Debacle
Former FTX CEO Sam Bankman-Fried has long maintained that FTX US is 100% solvent and could resume withdrawals for clients immediately. By his account, the US-only firm held assets separate from FTX International and was therefore shielded from certain accounting quirks and asset shortfalls that plagued the parent branch.
FTX’s new CEO, John Ray, backed up said claims before Congress in December, asserting that the FTX US accounts were kept separately from assets belonging to Alameda Research. Bankman-Fried has been indicted on multiple counts of fraud related to combining the assets of its exchange with those on the trading desk.
However, the FTX Office of Unsecured Creditors revealed that $90 million in FTX US client assets were missing in January. At the time, the company had cold stored just $91 million in liquid assets, compared with $181 million of identified assets.
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer – Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
