The Japanese subsidiary of FTX issued a statement in which it disclosed that the platform users in the country will be able to begin withdrawing their funds from the collapsed crypto exchange from February onwards.
On Thursday, FTX Japan announced that they were working on developing a system that would help the users of the now-defunct crypto exchange from making their withdrawals from the Liquid Japan website.
This is a crypto exchange that FTX Japan acquired earlier this year.
The Japanese subsidiary of FTX further said that customers would be able to see their website on the Liquid Japan website and then will be able to withdraw their holdings.
The company published a blog post on its website in Japanese and apologized for the inconvenience and worry they had caused to the customers because of the suspension of the withdrawal service.
The blog post was translated through Google. A timeline was laid out by FTX Japan for restoring the customer funds that had gotten stuck on the platform.
By mid-January, an account will be opened on Liquid Japan that will be used to hold the funds transferred from FTX Japan. Once this is done, withdrawals on Liquid Japan will open in mid-February.
This news came after an announcement on December 1st by FTX Japan that it had had a discussion with attorneys of the FTX Group.
They had confirmed in the said discussion that the crypto and cash of FTX Japan were not part of the estate because Japanese law dictates otherwise, since they are held as property interests and assets.
This news will definitely be a relief for customers of FTX Japan because clients of the crypto exchange worldwide have not been able to access their assets and money since last month when the company filed for bankruptcy.
Withdrawals had been blocked, so people were unable to retrieve their funds before the filing.
John J. Ray III, the new CEO of FTX, has stated that the international customers of FTX should expect to receive less amount than US customers from the bankruptcy proceedings.
Liquid Japan was founded back in 2014, but FTX acquired it this year in February as part of its plan to expand into East Asia for an undisclosed sum.
Before that, the company had been hacked in a major cyberattack, which saw crypto of more than $90 million stolen.
FTX, which had been playing the role of a savior for struggling crypto firms, had stepped in and provided Liquid with debt financing of about $120 million.
Sam Bankman-Fried’s company had attempted to do the same for a number of other companies, such as BlockFi and Voyager Digital, both of which have also filed for bankruptcy this year.
Meanwhile, in other news, the Securities Commission of the Bahamas disclosed that they had seized crypto assets of FTX worth $3.5 billion for ‘safekeeping’.
It further said that it was waiting for instructions from the Supreme Court of the country to return the funds to liquidators, creditors, or customers.