FTX Japan Looks to Unfreeze Client Funds and Allow Withdrawals

2 December 2022, 16:30 GMT+0000
Updated by Geraint Price
2 December 2022, 16:30 GMT+0000
In Brief
  • FTX Japan to resume withdrawals based on the argument that the Japanese customers’ assets should not be treated as the firm’s property.
  • The firm says that re-enabling the withdrawal service is its top priority.
  • Maxine Waters invited SBF to attend the hearing to investigate the collapse of FTX.
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FTX Japan has announced plans to allow customers to withdraw funds from the exchange soon, meaning they will be among the first to get their money back.

FTX investors to have been unable to withdraw the capital from the exchange due to the collapse of the Sam Bankman-Fried empire. But, a recent announcement from FTX Japan should come as a big relief for Japanese users. 

Law Prevents Customer Assets Being Treated as FTX Property

FTX Japan received confirmation from the law firm representing the FTX group that the Japanese customers’ assets should not be treated as the firm’s property. This is because the “assets are held and property interests under Japanese law.” Based on this confirmation, FTX Japan plans to re-enable withdrawals.

The notice further reads, “Our engineering teams are working to allow FTX Japan users to withdraw their funds. Re-enabling the withdrawal service is our top priority, and we are grateful for your understanding and support.”

Furthermore, Sam Bankman-Fried has claimed in a tweet that FTX US is solvent. He claims to be not sure why the FTX US withdrawals were paused. Does this mean FTX US might also re-enable withdrawals soon, or is it just a distraction tactic?

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SBF Called to Appear at U.S. House Committee Hearing

The United States House Financial Service Committee has organized a hearing on Dec. 13 to discuss the collapse of FTX. Maxine Waters, the chairman of the committee, invited Sam Bankman-Fried to the hearing because they “appreciate his willingness to talk to the public.”

The crypto community criticized Waters and called this action “incredibly disgraceful.” They ask her to reconsider and take an honorable approach. Ryan Wyatt, the chief executive officer at Polygon Studio, questions the move claiming that SBF is a criminal.

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Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.