- Japanese users could be among the first to get their money back.
- Customers’ funds “should not be part of FTX Japan’s estate” under Japanese law, the company says.
FTX Japan management team strategy
The failed FTX exchange, which is the parent company of FTX Japan, gave the go-ahead for a plan to return deposits, so FTX Japan wants to start taking out money again.
If the plan works, Japanese users of the crypto exchange that shut down could be among the first to get their money back.
On November 8, FTX Japan stopped letting people take money out of their accounts after being told to do so by local financial regulators. Three days later, Sam Bankman-global Fried’s business, FTX Trading Ltd., filed for bankruptcy in the U.S. under Chapter 11.
In a notice posted on its website, FTX Japan said that the company’s bankruptcy lawyers in the U.S. confirmed that Japanese customers’ funds “should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law.”
Since two weeks ago, FTX Japan has been working on a plan to get withdrawals back up and running. The plan was approved by the FTX Trading management team, the company says.
“Work on this plan has already begun, and our engineering teams are working to make it possible for FTX Japan users to get their money back. As part of the plan, we’re putting in place controls, security audits, reconciliations, and reviews to make the process strong and safe “as the sign said.
The notice says that every Monday, the subsidiary will “publish information about customer assets held in separate wallets” and in a trust account.
“FTX Japan plans to publish more information soon about when users will be able to make withdrawals again,” the notice said.