FTX Japan announces withdrawals of $50 million since February 21

By: Micheal Wilson

February 24, 2023 3:25 AM

The crypto exchange reported that 7,026 FTX Japan account holders had transferred cash from the firm to Liquid Global, which was required in order to withdraw assets.

The Japanese affiliate of bankrupt cryptocurrency business FTX has stated that thousands of users have left the exchange since it started withdrawals on Feb. 21.

FTX Japan announced on Feb. 22 that users of the exchange and Liquid Global had withdrawn about 6.6 billion yen — $50 million at the time of writing — in bitcoin and cash. According to the crypto business, 7,026 account holders transferred funds from FTX Japan to Liquid, and there were 5,697 cryptocurrency transactions and 1,947 fiat withdrawals.

On February 20, the crypto business stated that in order to process withdrawals, FTX Japan users must validate their account balances and transfer them to a Liquid account. For the first time in more than three months, withdrawals resumed at 3:00 a.m. UTC on February 21.

FTX Japan was a part of its parent company's bankruptcy case in November 2022, when the firm froze assets for approximately 9 million consumers, blocking access to millions of dollars. According to an NHK article at the time, FTX Japan had approximately 19.6 billion yen in cash — more than $138 million — when it suspended operations, implying that over $90 million was remained for customers as of Feb. 22.

Most FTX users, including those at FTX US, have been unable to withdraw their assets since November due to bankruptcy proceedings in the United States. The case is proceeding in the United States Bankruptcy Court for the District of Delaware, where the court declined a motion to appoint an independent examiner, citing the expense.