The Bitcoin exchange FTX Japan (Liquid)will develop a plan for returning client funds after it is confirmed that they are outside the bankruptcy proceedings of the parent company.
This followed from the segregation of user funds and the platform itself, under Japanese law. The obligation extends to funds in both fiat and digital assets.
The platform submitted to regulators a draft plan for resuming withdrawals, envisaging that regular consultations would be conducted as key milestones are reached.
In February FTX acquired the Japanese crypto exchange and related entities. In the summer, Sam Bankman-Fried’s company announced the launch of a local subsidiary, rebranding Liquid as FTX Japan K.K.
In November the Japanese Financial Services Agency ordered the platform to suspend operations and switch to close-only mode.
On November 11, Liquid suspended withdrawals after FTX Group filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
Five days later the platform ceased trading.
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