FTX Japan, the Japanese arm of bankrupt cryptocurrency exchange FTX, is planning to resume withdrawals by the end of this year, according to a report by a local media outlet that cited a statement from an unnamed executive in the company.
On November 10, Japan’s Financial Services Agency (FSA) ordered FTX Japan to halt operations until December and develop a “business improvement plan.” The order followed the crypto exchange’s decision to suspend customers’ withdrawals from its platform for an unspecified period.
FTX Japan is Developing Its Payment System
According to the report, the executive stated that the reason the local exchange can not resume withdrawals now is that it is using the same payment system as its parent company, which is currently suspended.
He noted that, as a result of this, FTX Japan is currently developing its payment system so it can resume withdrawals by the end of 2022.
FTX, which is FTX Japan’s parent company, filed for Chapter 11 bankruptcy on November 11 after it faced a severe liquidity crisis on its platform and a proposed rescue deal by rival exchange Binance fell through. Approximately 130 additional affiliated companies are part of the proceedings including FTX US and Sam Bankman-Fried’s (SBF) trading firm Alameda Research.
According to a recent court filing, FTX owes $3.1 billion to its top 50 creditors while its top 10 creditors have over $100 million each in unsecured claims. Overall, FTX has over 1 million creditors.
FTX Japan Poised for Sale
Meanwhile, according to a recent report, FTX Japan is expected to be sold off in its parent company’s bankruptcy process.
The report stated that FTX was carrying out a strategic review of global assets following its Chapter 11 bankruptcy process and sees FTX Japan as a prized part of its group due to its solvent balance sheet.
FTX Japan has roughly 19.6 billion yen (Approx. $138.2 million) in cash and deposits as of November 10, according to the report. The company holds crypto assets for 100,000 customers and has more assets than liabilities, the report added.
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