As of this Tuesday, February 21, FTX customers in Japan can regain their funds that were frozen in November following the FTX bankruptcy. In addition to withdrawals in both crypto and fiat, FTX’s Japanese subsidiary plans to resume other commercial services very soon. FTX Japan had suspended operations last November following the collapse of FTX.
FTX Japan clients access their funds
While FTX clients are worried around the world, in Japan they are more than confident. Last December, Liquid, a Japanese subsidiary of FTX, started the process to get the funds that were frozen on the platform due to the collapse of FTX back. It is now done. As of Tuesday, February 21, FTX customers in Japan can get back their funds that were frozen since last November.
We are pleased to announce that we will resume our services to withdraw fiat currency and crypto assets from FTX Japan via the Liquid Japan web platform at 12:00 noon JST on February 21, 2023.FTX Japan
According to FTX Japan’s release, the withdrawal services are provided by Liquid Japan, a local subsidiary of FTX. FTX Japan customers wishing to access their blocked assets will need to follow a simple process. First, they will need to confirm the balance of assets in their FTX Japan account and transfer them to their Liquid Japan account. Those who do not have an account with Liquid Japan must create one. Once the assets are in the Liquid Japan account, the client can easily withdraw them.
FTX Japan expects a strong response to the opening of the blocked funds withdrawal service. To this end, the processing of withdrawal requests may take some time. FTX Japan therefore calls on its customers to be patient and understanding. The exchange also announces that other services will soon resume on its platform.
FTX customers in other countries are concerned
While the Japanese subsidiary of FTX refunds the blocked funds and plans to restart operations to the delight of Japanese users, the procedure for refunding funds in other countries is slow and riddled with scams.
Indeed, a token called FUD (FTX User Debt) was recently launched with the purpose of refunding part of the funds of customers who were victims of the FTX collapse. The token immediately attracted people to the point that its value reached 70 dollars and its capitalization placed it in the top 50 cryptocurrencies. It was, however, a big scam. Indeed, the debtors in charge of FTX’s bankruptcy claimed that they had not issued any tokens to repay the debt. They also warned against such offers which are not authorized.
For the time being, the only hope to obtain a refund of the funds frozen on FTX is through the courts. To do so, FTX users must continue to register with the New York Attorney General’s office. However, let’s not kid ourselves: the legal process will be lengthy. Access to blocked funds is uncertain and could take years.
The most recent and telling example is the Japanese platform Mt. Gox. While the exchange went bankrupt in February 2014, it is finally 9 years later that its creditors are starting to get their blocked funds back.
FTX has shown us that no crypto company is “too big to fail”. Crypto investors should be aware of this and be scrupulous about the safety of their assets. States that claim to protect their citizens from crypto scams should also take a cue from Japan. Rather than banning crypto, that country has instead put in place regulations that protect its citizens. Dubai understood this and has put in place comprehensive regulations. Other countries should do the same.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.