FTX Japan Plans Resumption For Late 2022
- Former FTX CEO, Sam Bankman-Fried believes filing for bankruptcy was a mistake as it took financial decisions out of his control.
- Crypto analysts have cautioned that users may only receive a small portion of what they invested in FTX once the bankruptcy proceedings are concluded.
- FTX plans to sell and restructure some of its companies as part of its fundraising efforts.
FTX’s subsidiary in Japan, FTX Japan, is reportedly planning to resume withdrawals in late 2022, days after stopping operations. Japan’s Financial Services Agency, or FSA, asked FTX Japan to halt business orders on November 10, a day before FTX.com filed for bankruptcy on behalf of 130 connected firms. Additionally, FTX Japan had around 19.6 billion yen in cash (more than $138 million) when it suspended operations.
FTX’s liquidity crisis made it difficult for customers to withdraw their funds, but it appears the company’s subsidiary in Japan is keen on pleasing its troubled customers. An executive of the Japan-based company confirmed to a local source that the trading platform is developing a system to enable users to withdraw their funds.
The news comes hours after FTX announced that it will be selling and restructuring some of its businesses to raise funds for the assets of returning users. Although no confirmation has been provided, FTX Japan is also anticipated to be one of the businesses lined up for sale.
The creditors of FTX, who were said to total more than one million according to prior court documents, would gain from any sale. Another court document states that the top 50 of these creditors alone are due a combined total of over $3.1 billion.
John Ray, the newly appointed CEO of FTX criticized the management of the bankrupt cryptocurrency exchange last week, claiming he had never “seen such a complete failure of corporate controls.” Ray said the company lacked reliable financial information, adding that FTX purchased homes for its employees with corporate funds.