FTX Japan first to return customers’ funds? FTX Japan’s Plan to Reclaim Deposits and Restart Withdrawals

FTX Japan is trying to make customers whole

FTX Japan is hoping to restart withdrawals for its customers in Japan, who were affected when the exchange had to suspend services on November 8th. This plan was approved by FTX Trading Ltd., the global enterprise of Sam Bankman-Fried, which filed for Chapter 11 bankruptcy three days later. FTX Japan has started development work to allow customers to withdraw their funds, incorporating controls and security audits for a robust and secure process. The company plans to publish information about customer assets held in segregated wallets and in trust accounts each Monday and hopes to announce the resumption of withdrawals soon.

Quick Summary:

  • FTX Japan is looking to restart withdrawals after a plan to return deposits was approved by its bankrupt parent FTX
  • Withdrawals from FTX Japan were halted on Nov. 8 after local financial regulators ordered the exchange to suspend services
  • FTX Japan had been working on the plan to restart withdrawals for the last two weeks and says it was approved by the FTX Trading management team
  • FTX Japan is set to publish information about customer assets held in segregated wallets and in a trust account each Monday
  • FTX Japan aims to publish additional information regarding the resumption of withdrawals for FTX Japan users in short order

FTX Japan is looking to restart withdrawals after the approval of a plan to return deposits from its bankrupt parent FTX. The exchange was forced to suspend services on November 8th after local financial regulators ordered it to do so. FTX Trading Ltd., the global enterprise of Sam Bankman-Fried, then filed for chapter 11 bankruptcy in the U.S. three days later.

FTX Japan has been working on the plan to restart withdrawals for the last two weeks and it has now been approved by the FTX Trading management team. The subsidiary is set to publish information about customer assets held in segregated wallets and in a trust account each Monday. Additionally, they will be incorporating controls, security audit, reconciliations, and reviews to put in place a robust and secure process.

FTX Japan has stated that they aim to publish additional information regarding the resumption of withdrawals for FTX Japan users in short order. This is great news for customers of the exchange who may soon be able to get their money back. It is also a positive sign for the crypto industry as a whole, as it shows that exchanges are taking steps to ensure the security of customer funds and that the industry is becoming more regulated.

FAQ

1. When will FTX Japan restart withdrawals?
2. How will customer assets be held in segregated wallets?
3. Who approved the plan to restart withdrawals?
4. When will information about customer assets held in segregated wallets be published?
5. Will customers be some of the first to get their money back?

The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur. 
Disclosure: Authors are invested in cryptocurrency projects and have cryptocurrency holdings - including those covered on this website. 

Michael
Michael
I’m Michael Gu, Creator of Boxmining. I’ve been involved in the digital asset and Blockchain space since 2012. Something I immediately noticed was that accurate information is hard to come by in this space. More often than not, we find extremely biased information that exploits the complexity of blockchain to obscure facts. Having been around before bitcoin or blockchain was even “cool” meant that I had to do a lot of discovery myself, and along the way, I had many successes, but also made mistakes. I started Boxmining in 2017 mainly as a passion project, to educate people on digital assets and share my experiences. Being based in Asia, I also found a huge discrepancy between digital asset trends and knowledge gap in the West and China. So I leveraged my knowledge and positioning to bridge that information gap and let people know what is truly happening. This journey has been nothing short of exhilarating for me, starting from when I mined Bitcoin in grad school to appearing on China’s national television as an overseas expert on blockchain technology, and having the honour of interviewing leading crypto entrepreneurs, including Binance CEO Changpeng Zhao and FTX founder Sam Bankman-Fried.

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