FTX Japan’s users withdraw $50 million in two days

abdelaziz Fathi

The Japanese subsidiary of bankrupt exchange FTX reported roughly $50 million in crypto and fiat withdrawals since it started allowing customers to access their assets on Tuesday.

In a corporate statement, FTX Japan said 7,026 users moved 6.6 billion yen from their exchange accounts to Liquid, a relatively quick reboot compared to customers in other countries where they are a long way from getting access to their assets.

Earlier this week, FTX Japan launched beta testing of the balance transfer process for a randomly selected group of customer accounts.  The Japanese subsidiary will use the feedback to make the process of confirming and transferring balances “as transparent as possible” for the wider group of FTX users.

That came barely two months after the exchange laid out a timeline for the restoration of customer funds and resume asset withdrawals as early as February.

The exchange developed a recovery system that enables affected users to retrieve their assets via Liquid Japan, which was the first exchange to be officially licensed by the Japan Financial Services Agency (JFSA).

The Japanese watchdog has originally ordered FTX Japan to suspend operations until December 9 and put together a “business improvement plan.” It was then given an additional three months, until March 9, to fulfil the regulator’s orders. The extension came as the exchange was still unable to return customer assets while its trading systems continue to be out of function.

Under the orders, FTX Japan suspended over-the-counter derivatives transactions and related margins as well as new deposits. It also informed users that during the suspension period, services relating to new account opening, spot trading, fiat currency deposits, incoming crypto transfers, and derivatives transactions are halted.

FTX Japan stopped client withdrawals on November 8 after Japan’s regulator ordered it to suspend services. That came shortly after its parent entity fell into a dramatic liquidity crisis that reportedly required $8 billion to resolve. But three days later, FTX’s founder Sam Bankman-Fried filed for Chapter 11 bankruptcy protection in the US.

The Kanto bureau also ordered the exchange to hold its assets domestically over the same timeframe, properly reporting liabilities on its balance sheet. The regulator said that the exchange does not have the necessary structure to provide crypto exchange services in a manner deemed appropriate under the Japanese standards.

Read this next

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

<