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FTX Japan to Repay Customers in February 2022

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In February 2023, FTX Japan will begin to repay its clients' holdings. The process is expected to be conducted via Liquid Japan, a cryptocurrency trading platform that FTX Japan recently acquired. Customers will be able to access their accounts, view balances, and begin withdrawing their funds in mid-January. FTX Japan has expressed remorse for the extended period of service stoppage, during which customers were unable to withdraw their fiat money and crypto assets. The new leadership of FTX, led by John Ray III, has submitted a motion to the Bankruptcy Court of Delaware to approve bidding processes for four of FTX's independent solvent subsidiaries in the United States, Japan, and Europe. When FTX Trading declared bankruptcy, FTX Japan had been operational for only six months, but was storing $94.5 million in crypto assets and $46 million in fiat funds in separate customer accounts.

FTX Japan, the Japanese branch of cryptocurrency exchange FTX, announced in a statement on Thursday that it plans to start repaying client holdings in February 2023.

FTX Japan recently acquired the cryptocurrency trading platform Liquid Japan and plans to allow its clients to withdraw their holdings through Liquid Japan.

Customers will be able to create Liquid Japan accounts, view their balances, and start making withdrawals in mid-January.

FTX Japan expressed regret for the prolonged suspension of services for the withdrawal of fiat cash and crypto assets and said that the cash and cryptocurrency holdings of Japanese clients “should not be part of FTX Japan’s estate.”

The parent company of FTX, FTX Trading, filed for Chapter 11 bankruptcy in December, and the new management, led by John Ray III, has filed a motion with the Bankruptcy Court of Delaware to approve bidding processes for four of the company’s independent solvent subsidiaries in the US, Japan, and Europe.

Approximately $94.5 million in crypto assets and $46 million in fiat money were stored in separate customer accounts at FTX Japan, which had only been open for about six months when FTX Trading went bankrupt.

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