Despite FTX’s eventual collapse, the company’s Japanese subsidiary plans to allow customer withdrawals before the end of the year.
The Sam Bankman-Fried stock exchange failure has become one of the key events in the history of cryptocurrency. Once worth around $32 billion, it recently failed to process user withdrawal requests and reported serious liquidity problems. FTX filed for bankruptcy a few days later in order to “develop a process to maximize recovery.”
FTX Japan solution
The Japanese subsidiary of FTX uses the same system as the parent company, which is why it has not been able to resume customer withdrawals yet.
According to a new report, the subsidiary is currently developing a new infrastructure that will enable such transactions by the end of 2022.
FTX Japan claimed to have about 19.6 billion yen (about $138 million) in cash and deposits as of November 10. No outflow of customer funds has been reported abroad.
The platform launched its Japanese project in June this year to strengthen its global presence and serve local consumers. It obtained all necessary approvals from local regulators, but its operations were severely disrupted by the collapse of its parent company.
A brief history of the crash
FTX’s biggest troubles began at the beginning of the month when Binance promised to liquidate its total supply of 23 million FTT coins. Reports are starting to emerge that many clients are trying to get their money out of FTX, compounding the domino effect.
Bankman-Fried (founder of FTX) confirmed that the trading venue and its assets are “good” but later revealed that Binance intends to acquire his organization.
However, after investigating the matter, the world’s leading cryptocurrency exchange backed out of the deal, claiming that the latter’s problems were “beyond our control or ability to help.” Shortly thereafter, SBF resigned as CEO and filed for Chapter 11 bankruptcy, which proved to be the final nail in the coffin for FTX and sent shock waves throughout the digital asset space.
The market capitalization has fallen to well below $850 billion (compared to $1 trillion before the crisis). For its part, bitcoin price is down around 25% and is currently hovering around $16,000.
Huge investment losses prompted a well-reasoned barrage of criticism against Bankman-Fried. The new owner of Twitter and the richest man in the world – Elon Musk – said that he had a recent conversation with the former CEO of FTX and that he did not have a good opinion.
“I talked to him for about half an hour knowing my meter was red. It was like this guy was rubbish – that was my impression.
Binance CEO Changpeng Zhao urged the SBF to stop posting misleading messages on Twitter and instead focus on its own problems. He denied rumors that Binance was behind the FTX crash and advised Bankman-Fried to “put on a suit” and answer people’s questions.
FTX Japan Post to Enable Customer Withdrawals Before End of 2022 (Report) appeared first on CryptoPotato.