FTX Japan drafts roadmap to return customer funds, withdrawals expected to begin in January 2023
|- FTX Japan aims to return customer assets, plan to use the Liquid platform to facilitate withdrawals.
- FTX's new CEO confirmed Sam Bankman-Fried and other former executives are no longer involved in day-to-day operations.
- FTX's native token, FTT, noted an almost 16% spike to around $1.50 on Wednesday before returning to $1.31.
FTX and other 130 affiliated companies filing for bankruptcy impacted more than a million people who are yet to receive compensation for their losses. However, the FTX Japanese arm is taking the onus of returning its customers' funds, creating a roadmap for the same.
FTX Japan follows through
FTX's Japanese unit is reportedly drafting a plan which will allow its clients to withdraw their funds in the next few months. This would be one of the rare cases wherein a bankrupt company will be paying back its investors. As reported earlier by FXStreet, the exchange had already planned on resuming withdrawals, awaiting a new system since the one used by FTX remained suspended.
Thus, FTX Japan turned to the trading platform Liquid, which will now be used to facilitate the return of assets. Following a verification process, customers' balances would be transferred to Liquid, which can then be withdrawn by users.
The company has provided a roadmap to Japan’s Financial Services Agency (FSA). According to the proposal, customers would be able to withdraw their money as early as January 2023.
Sam Bankman-Fried is no longer involved in FTX
While FTX Japan is attempting to fix things its own way, its parent company is also working on restructuring the organization. The new CEO of FTX, John Ray, recently stated that things would relax a bit in regard to the bankruptcy proceedings. Ray added that the company was also no longer communicating or "dealing with" either the former CEO Sam Bankman-Fried or his associates.
Neither Sam Bankman-Fried nor other former executives of his inner circle are involved in the company's day-to-day operations. He further said,
"We're getting more and more control over the situation."
On the other hand, the native token of the exchange, FTT, noted a sudden jump in its price on Wednesday.
FTT/USDT 1-day chart
The cryptocurrency shot up by 16.31%, reaching a high of $1.519 before declining to trade at $1.31. The altcoin has been noting such fluctuations for days now but has yet to recoup any of its 95.06% losses that were initiated following the November 6 crash.
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