FTX Japan reveals details of plan to return client funds

The Bitcoin exchange FTX Japan (Liquid)presented a plan to return client funds.

The process will differ for owners of FTX Japan and Liquid Japan accounts.

“We are continuing to develop a system that will allow withdrawals from the Liquid Japan web version. In particular, users will be able to check their FTX Japan balance in the Liquid Japan web version, and then access the assets,” — the platform’s blog said.

For this category of clients, an account will need to be opened with the latter, with funds transferred to the exchange from FTX Japan. Notifications will be sent by email after the external security audit is completed.

When opening an account, a KYC procedure may be required.

Liquid Japan clients will be able to withdraw funds as usual.

Users of FTX Japan (Liquid) were outside the scope of the bankruptcy of the parent company. This was made possible thanks to asset segregation of users and the platform itself, in accordance with Japanese law. This obligation applies to funds both in fiat and in cryptocurrencies.

In February FTX acquired the Japanese cryptocurrency exchange and related structures. In the summer the company of Sam Bankman-Fried announced the launch of a local subsidiary, renaming Liquid to FTX Japan K.K.

In November the Financial Services Agency of Japan ordered the platform to suspend operations and switch to close-only mode.

In the same month, Liquid froze withdrawals. Later, the exchange ceased trading.

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