One of the 134 businesses who went bankrupt as a result of FTX’s decision to declare bankruptcy but chose to honor its customers’ requests to recover their money is FTX’s Japanese affiliate.
Following the confirmation by the Japanese subsidiary that the customer’s assets would not be affected by FTX’s bankruptcy, the Japanese subsidiary will proceed with the development of a strategy to restore the customer’s monies.
The Japanese subsidiary verifies with the law firm Rath and Cobb LLP, which is representing FTX in Chapter 11 bankruptcy, that according to Japanese regulation, the cryptocurrency exchange is required to keep customer funds separate from the exchange’s own assets. FTX is currently in the process of filing for Chapter 11 bankruptcy protection.
Beginning in January, FTX Japan will repay customer monies using a system known as Liquid, which will be used by the company. Following the completion of a verification procedure, user balances would then be transferred to Liquid so that users may then withdraw their money.
This year, FTX bought the Liquid platform in order to extend its position in the Japanese market. After thereafter, in June, FTX opened its Japanese operations in order to start providing cryptocurrency services to Japanese clients.
According to the draft, the first withdrawals from customers’ accounts might take place as early as the week of January 9. The strategy will be carried out in stages, each of which will consist of one of the following actions: data gathering, authentication, data transfer, dissemination, or withdrawal.
Compiled by Coinbold