FTX Japan to resume withdrawals by 2023: Report | The Financial Express

FTX Japan to resume withdrawals by 2023: Report

Liquid, a different Japanese-based member of the FTX Group, declared that it had suspended “all forms of trading” as a result of the company declaring Chapter 11 bankruptcy.

FTX Japan to resume withdrawals by 2023: Report
LedgerX, which is owned by FTX US and is registered under the business name West Realm Shire Services, might not be included in the bankruptcy filing for FTX.

By the end of 2022, FTX Japan, a subsidiary of the cryptocurrency exchange FTX, reportedly plans to start accepting withdrawals again, as reported by Cointelegraph.

According to Cointelegraph, NHK, a Japanese news organisation, reported on November 21 that FTX Japan has been getting ready to resume withdrawals. Prior to FTX Group filing for bankruptcy in the US for more than 130 associated companies, including FTX Japan Holdings, FTX Japan, and FTX Japan Services, Japan’s Financial Services Agency, or FSA, requested on Nov. 10 that the exchange suspend business orders.

Cointelegraph further noted that in response to reports that FTX Japan’s parent company was “facing credit uncertainties,” the FSA declared on November 11 that it had taken administrative actions against FTX Japan. The orders mandated that FTX Japan suspend all over-the-counter derivatives transactions, associated margins, and new user deposits from November 10 to December 9 unless the financial regulator gave other instructions. By Nov. 16, FTX Japan was also required to submit a plan outlining how it intended to safeguard investors and be transparent about the current situation.

Cointelegraph further noted that in response to ongoing legal action brought against the company, other FTX subsidiaries have made comparable decisions. On Nov. 20, Liquid, a different Japanese-based member of the FTX Group, declared that it had suspended “all forms of trading” as a result of the company declaring Chapter 11 bankruptcy. LedgerX, which is owned by FTX US and is registered under the business name West Realm Shire Services, might not be included in the bankruptcy filing for FTX.

(With insights from Cointelegraph)

Also Read: US prosecutors opened probe of FTX months before its collapse

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First published on: 22-11-2022 at 11:57 IST