FTX Japan, the Japanese arm of failed crypto exchange FTX, has announced plans to return customer funds as early as February 2023.
The company’s press release details the proposed roadmap to allow users to access their funds through a release from Liquid Japan’s website, a sister platform. The company has offered a three-way process to get FTX Japan and Liquid Japan users back to get their money back.
From mid-January, FTX Japan will send an email with a link to open a Liquid Japan account to all users eligible for a refund. Then, these users can withdraw their funds and transfer their assets from FTX Japan to Liquid Japan from where they will be withdrawn.
However, the company said that some of these users may be subject to Liquid Japan’s unique identity verification process before newly opened accounts can be activated. Adds that he will tell the users individually if this process is necessary. In addition, the proposed system will be subject to change depending on the progress of its external security research. Recall that FTX acquired Liquid Group and all its operating subsidiaries in March for an undisclosed sum. Upon acquisition, he agreed to provide services to existing Japanese customers in accordance with Japanese law.
Japanese law also protects FTX Japan employees
Interestingly, it would appear that investors are protected in Japan due to the law that requires crypto exchanges to separate their clients’ money and assets.
Earlier this month, FTX Japan confirmed that the client’s assets were not part of its parent company’s liquidation process. The company updated its website to reflect this fact and made it a priority to allow users to withdraw their money.
After FTX filed for bankruptcy, FTX Japan and Liquid Japan stopped withdrawing from their platforms after instructions from FTX’s bankruptcy representative. Although it stopped removing from the platform, FTX Japan through a tweet assured users that their money is not safe because its cold wallet security exceeds customer deposits by law.