FTX Japan Might Soon Allow Fund Withdrawals to Its Clients

FTX Japan stated that they are currently working with Japanese regulators in order to ensure customer withdrawals as soon as possible.

According to Bloomberg, the Japanese subsidiary of bankrupt crypto exchange FTX is working to facilitate withdrawals for its investors. If successful, this would be a rare case of investors getting their money back from a collapsed exchange.

On November 8, three days before FTX Japan filed for bankruptcy, the exchange had first suspended withdrawals. However, as stated on the FTX Japan website, the firm’s management team has decided to resume withdrawal services. The company is currently working on a security audit and incorporating controls, reconciliation, and reviews before resuming services fully.

Japanese regulators are requesting a timeline to return customer funds as soon after the collapse of the crypto exchange FTX. Once verification is complete, balances will be moved to the Liquid platform where customers can then withdraw their money.

FTX Japan K.K. currently has $46 million in fiat currency and $94.5 million in crypto assets held in customer accounts, according to a report from the company on Wednesday (Sept 9). FTX Japan said that Japanese customers’ digital assets and cash shouldn’t be included as part of FTX Japan’s estate, meaning that local unit will resume withdrawal services for its customers soon.

FTX Japan’s management team is in regular communication with the relevant regulators. In addition, they explained that all asset-segregated wallets have their private keys kept offline and under the complete control of FTX Japan’s operations team.

FTX founder Sam Bankman-Fried has been making public appearances despite the recent crypto market crash. SBF recently gave his first network interview with ABC News’s George Stephanopoulos, adding that he feels the burden of not having done enough to save FTX.

“I expect I’m gonna have nothing at the end of this.”

Former FTX CEO Sam Bankman-Fried sits down with @GStephanopoulos for a one-on-one interview following both companies in his cryptocurrency empire filing for bankruptcy last month. https://t.co/FxYbmQi92Z pic.twitter.com/lMviovTymN

— Good Morning America (@GMA) December 1, 2022


“I’m not the villain,” SBF said, defending his innocence. He continued:


“A lot of people look at you and see Bernie Madoff,” Stephanopoulos said. “I don’t think that’s who I am at all,” Bankman-Fried responded. “But I understand why they’re saying that. People lost money. People lost a lot of money.”


SBF’s latest tweets also included FTX US halting withdrawals, to which he responded with surprise.