FTX To Return Customer Funds In February, But There’s A Catch

Crypto exchange FTX and sister firm Alameda’s executives Sam Bankman-Fried, Caroline Ellison, and Gary Wong are facing criminal charges in the U.S. Meanwhile, FTX Debtors under new CEO John J. Ray III plans to return customer funds through asset sales as part of the Chapter 11 bankruptcy process.

Meanwhile, FTX Japan has finally revealed plans to return customer funds as the assets are unaffected by bankruptcy due to Japan’s regulations. FTX Turkey has already returned client assets.

FTX Japan Reveals Plans To Return Customer Assets

Crypto exchange FTX Japan in an official announcement on December 29 revealed the timeline and roadmap for returning customer funds. Customers will be able to withdraw their crypto assets from the affiliated exchange Liquid Japan in mid-February.

According to the timeline and roadmap, customers eligible for FTX Japan returns will be notified through an email with a link to open an account at Liquid Japan in mid-January. Customers who already have an account with Liquid Japan are not required to follow this step.

Thereafter, users will be able to log in to Liquid Japan to check their crypto assets and transfer them from FTX Japan to Liquid Japan. However, it should be noted that customer funds return withdrawal may face delays due to a security audit, incorporating controls, reconciliation, and reviews.

After the transfer of crypto assets to Liquid Japan, customers can easily withdraw their assets. Japanese subsidiary will become the second subsidiary after FTX Turkey to return customer funds.

FTX Japan executive earlier claimed that a separate withdrawal system is under development to resume withdrawals for customers by the end of this year. The Japanese arm reportedly has around 19.6 billion yen ($138 million) in deposits as of November 10.

Meanwhile, Former FTX CEO Sam Bankman-Fried is scheduled to be arraigned in Manhattan federal court on the afternoon of January 3, 2023, before U.S. District Judge Lewis Kaplan.

Also Read: Is Bitcoin Price Fall To $10K Inevitable In Early 2023?

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.