Liquid Japan is a locally licensed cryptocurrency exchange that was acquired by FTX in April 2022. In order to be able to withdraw their assets from FTX Japan, users would need to open an account with Liquid Japan, assuming they don’t already have one. The Japanese subsidiary of FTX informed all eligible clients about the details of the procedure via email.
In December 2022, the collapsed exchange revealed that it would allow its customers in Japan to withdraw their funds via Liquid Japan, and it now has made good on that promise. However, the company did bring up the possibility of some delays in processing withdrawal requests due to a large number of requests from customers.
FTX Japan and Liquid.com were forced to stop withdrawals following the collapse of FTX in November 2022. When FTX and its 134 affiliates filed for bankruptcy in the United States, digital assets worth billions of dollars remained tied up. These assets belong to an estimated 9 million customers in legal proceedings.
According to financemagnates.com, FTX administrators are fighting for the control of about USD 3.5 billion worth of cryptocurrencies that are currently being held up by the financial markets regulator in The Bahamas. These cryptocurrencies also belong to FTX customers.
As part of the bankruptcy proceedings in the US, FTX was allowed to sell four entities, namely CFTC-regulated derivatives exchange LedgerX LLC, FTX Europe, FTX Japan, and the equities-trading platform Embed Technologies.
In December 2022, the Kanto Local Finance Bureau in Japan has extended the suspension of FTX Japan until March 9, 2023. Initially, the Asian regulator ordered the subsidiary’s suspension until 9 December 2022. According to financemagnates.com, when it shut down its operations in November 2022, FTX Japan held roughly JPY 19.6 billion in cash, as well as digital assets worth more than USD 138 million.
Shortly after FTX filed for bankruptcy, US-based crypto lender BlockFi has done the same due to a liquidity crisis caused by its proximity to FTX. BlockFi conducted business with FTX by issuing loans to crypto trading firm Alameda, and it also held cryptocurrencies on the exchange’s platform. According to decrypt.com, BlockFi took a USD 400 million line of credit from FTX US in the summer of 2022, and it also received USD 850 million in two funding rounds in 2021.
In January 2023, US-based crypto lender Genesis has filed for Chapter 11 bankruptcy protection in New York. The filings submitted by the company estimate that it has between USD 1 billion and USD 10 billion in assets and between USD 1 billion and USD 10 billion in liabilities.
Estimates also suggest that it has more than 100,000 creditors. According to Yahoo, a court document file showed Genesis held USD 5.1 billion in liabilities in the weeks following its withdrawal freeze on 16 November 2022. A wholly owned subsidiary of the Digital Currency Group (DCG), genesis incurred losses in June 2022, and it became unable to carry on its operations following the downfall of FTX.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now