Funds held by FTX clients in Japan throughout the bankruptcy process will be released to them soon. FTX Japan and FTX Liquid, both of which are owned by FTX, are working on a withdrawal system that should be ready by the middle of February.

On Thursday, FTX Japan and Liquid, two FTX-owned Japanese cryptocurrency exchanges, informed their subscribers that withdrawals would be available by the middle of February. Both cryptocurrency markets made the following statements:

For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that withdrawals will be possible from the Liquid Japan website.

FTX Japan Customers to Register with Liquid

Customers of FTX Japan will need to register with Liquid and move their assets to the Liquid platform before they may withdraw cash. By the middle of February, the exchanges say they will begin processing withdrawal requests. It was earlier this year when FTX acquired the Japanese exchange Liquid. One of the first crypto exchanges to gain approval from Japan’s main financial regulator in 2017 was a part of the deal’s Quoine Corp.

About $90 million worth of cryptocurrencies were stolen from the Liquid platform prior to the acquisition. Later, FTX lent Liquid $120 million in debt financing.

On November 11, FTX submitted its bankruptcy petition. As of the 1st of December, however, FTX Japan announced that it has confirmed with lawyers for the FTX group that “Japanese customer cash and cryptocurrencies should not be part of FTX Japan’s estate given how these assets are handled and property interests under Japanese law.”

The FSA issued a business suspension order, an order to hold domestic assets, and an improvement order against FTX Japan in the month of November. Because of the orders, the exchange had to immediately halt withdrawals for all customers. FTX officially declared bankruptcy in the United States the day after.

Both the exchange and its former CEO, Sam Bankman-Fried (SBF), have been hit with various counts of fraud by American authorities.

FTX Customers Can Breathe a Sigh

According to John J. Ray III, FTX’s new caretaker leader, international clients can expect to receive less compensation from the bankruptcy court than US customers. Liquid was founded in 2014 and was acquired by FTX in February as part of its expansion into East Asia for an unknown fee.

Before then, it had been the target of a massive cyberattack in which hackers stole more than $90 million in cryptocurrency. Liquid received $120 million in debt funding from Sam Bankman-FTX, Fried’s which positioned itself as a savior for struggling cryptocurrency companies.

The Securities Commission of The Bahamas also said on Thursday that it had confiscated $3.5 billion in FTX crypto assets “for safekeeping” as it awaited direction from the Supreme Court of The Bahamas on how to distribute the funds to FTX’s clients, creditors, or liquidators.

FTX clients can breathe a sigh of relief after hearing the news. As of the company’s bankruptcy filing last month, customers of FTX around the world have been unable to withdraw any of their funds.

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