FTX customers in Japan could very soon find their funds blocked due to the collapse of the platform in November 2022. Indeed, Liquid, a Japanese subsidiary of FTX, has announced that it is updating its site to facilitate withdrawals of frozen funds. This assurance contrasts with the concern of FTX users in other states.
Funds frozen by FTX will be returned to Japan
While FTX customers still don’t know which God to pray to to get their funds back, things may be looking up for exchange users in Japan. This assurance comes from Liquid, THE Japanese subsidiary of FTX.
In a statement dated December 29, Liquid said that the assets of FTX Japan and Liquid customers will be returned. These assets had been frozen following the collapse of FTX in early November 2022.
To facilitate the withdrawal of funds, Liquid is working on optimizing the web version of its site. As soon as this optimization work is completed, FTX and Liquid customers will be able to simply log in to the new web version of Liquid’s site to view their balances and withdraw their funds. After the release of the blocked funds, Liquid plans to continue its crypto buying and selling activities.
For assets entrusted to us by our clients at FTX Japan and Liquid Japan, we are developing the system so that withdrawals can be made from the web version of Liquid Japan. Customers using the Liquid Japan platform will be able to withdraw as usual.Liquid
Liquid has not announced when FTX’s Japanese customers will be able to get their funds back. However, the exchange said that in mid-January an e-mail will be sent to eligible customers. The e-mail will contain information on how to use the new web version of the Liquid site. Furthermore, the Liquid platform has reassured that opening an account on the new web version of the site does not require KYC. However, some customers may be contacted individually for identity verification.
As a reminder, Liquid Group had been acquired by FTX in February 2022. The formalities of handing over the management of Liquid’s business to FTX were obviously not completed. This is why Liquid escaped the mismanagement of FTX by Sam Bankman-Fried.
Other FTX users divided between uncertainty and hope
Liquid’s decision to return FTX customers’ funds is great news. Unfortunately, it only affects FTX customers residing in Japan. According to CoinGecko, this country is among three states most affected by FTX’s bankruptcy. With 223,513 monthly users, residents of Japan accounted for 4.6% of traffic on FTX. In other states, measures to return FTX customers’ funds are still pending.
Still, there is hope for FTX customers. Not all of the company’s money was squandered by Sam Bankman-Fried and his cronies. In fact, in addition to SBF’s arrest and extradition to the United States, Bahamian authorities claim to have seized $3.5 billion in FTX assets. While the harm caused to businesses and users by FTX is significant, these funds could help return funds to some customers. At least, we hope so.
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.