FTX Japan plans to resume asset withdrawals by year-end: report
FTX Japan, a subsidiary of the cash-strapped crypto asset exchange FTX, is preparing to resume asset withdrawal services, now being suspended, by the end of the year, Japanese broadcaster NHK reported.
FTX Japan has suspended crypto assets and legal tender withdrawals after its parent company filed for bankruptcy in the U.S. on November 11. The Japanese subsidiary was subsequently ordered by the Kanto Local Finance Bureau to suspend operations for a month and improve its business.
Officials said FTX Japan had failed to give customers a clear reason and specify a resumption date when suspending its withdrawal services.
FTX Japan executives explained that customers were unable to take out their assets “because we are using the same system as FTX (which has been suspended), NHK reported. To solve the problem, the Japanese subsidiary is now developing its own system, expected to be completed by the year-end, the broadcaster reported.
Makoto Takada, an attorney licensed to practice law in Japan and the State of New York and an expert on crypto assets, said, “Even if the Japanese corporation is included in the Chapter 11 filing under US law, Japanese law will take precedence in Japan. Therefore, FTX Japan is not allowed to file a Chapter 11 application in Japan. As long as FTX Japan manages client assets in Japan, there is a high possibility that both legal tender and crypto assets will be refunded unless the company initiates bankruptcy proceedings in Japan.”