The Japanese subsidiary of the collapsed bitcoin exchange promises a “master plan” to return the money withheld from Japanese users.
FTX Japan has announced plans to allow clients to withdraw funds from the exchange soon, meaning they will be among the first to get their money back.
FTX investors have been unable to withdraw capital from the stock market due to the collapse of the Sam Bankman-Fried empire. However, a recent announcement from FTX Japan should come as a great relief to Japanese users.
Law Prevents Client Assets from Being Treated as FTX Property
FTX Japan has received confirmation from the law firm representing the FTX group that the assets of Japanese clients should not be treated as company property.
Based on this confirmation, FTX Japan plans to re-enable withdrawals. The notice further says the following:
“Our engineering teams are working to enable FTX Japan users to withdraw their funds. Re-enabling the withdrawal service is our top priority, and we are grateful for your understanding and support.”
FTX Japan specified that the differentiation between user funds and company assets was disclosed with the support of the law firm representing the FTX Group in bankruptcy proceedings in the United States.
“Fiat money and cryptocurrencies from Japanese clients should not be part of FTX Japan’s assets given the way these assets are held and ownership interests under Japanese law,” the company states.
Additionally, Sam Bankman-Fried has claimed in a tweet that FTX US is solvent. He claims to be unsure why withdrawals from FTX US stopped. Does this mean that FTX US could also re-enable withdrawals soon, or is it just a diversionary tactic? Here is what SBF tweeted:
“When I filed, I’m fairly sure FTX US was solvent, and that all US customers could be made whole. To my knowledge, it still is today. I was expecting that to happen. I’m surprised it hasn’t. I’m not sure why US withdrawals were turned off.”
SBF Called to Appear in the House of Representatives
The United States House Financial Services Committee held a hearing on December 13 to discuss the collapse of FTX. Maxine Waters, chair of the committee, invited Sam Bankman-Fried to the hearing because they “appreciate his willingness to speak to the public.”
“@SBF_FTX, we appreciate that you’ve been candid in your discussions about what happened at #FTX. Your willingness to talk to the public will help the company’s customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th,” Waters tweeted.
The community criticized Waters, calling this action “incredibly embarrassing.” They demand she reconsiders and takes an honorable approach. Ryan Wyatt, CEO of Polygon Studio, questions the move, claiming that SBF is a criminal.
By Audy Castaneda
