FTX Trading, a major crypto asset exchange that declared bankruptcy in 2022, has decided to postpone the sale of its subsidiary, FTX Japan.
FTX Japan Sale Postponement: A Strategic Move Amid Reboot Process
This decision comes as the company is undergoing a reconstruction process. The company has communicated its intentions to the Japan Financial Services Agency through FTX Japan. This move is seen as a strategic step to ensure the smooth reboot of the exchange’s operations.
FTX Japan’s Asset Return Process Progressing Smoothly
Despite the postponement of the resale plan, FTX Japan’s customer asset return process, launched in February, is progressing smoothly. The company has successfully returned 80% of fiat currency, such as Japanese yen and virtual currency, to its customers. This success can be attributed to FTX Japan’s strict adherence to Japanese exchange and reserve regulations, which has helped it avoid severe impacts.
FTX’s Reopening Plans: Attracting Interested Parties
At the end of June, the new CEO of FTX, John J. Ray III, announced that the company had begun attracting interested parties to reopen the crypto exchange FTX.com. The FTX platform is highly appreciated on a technological level, making it a viable candidate for reopening. However, the company faces a significant obstacle in the form of huge debt owed to creditors, including former customers.
Overcoming Obstacles: The Path to Reopening
FTX is working to overcome this obstacle by convincing former customers to accept only partial refunds. This strategy, if successful, could potentially expedite the reopening plans. In the coming weeks, FTX plans to launch a portal for customers owed to the global crypto trading platform FTX.com and its affiliates to state their requirements.
About FTX Japan
FTX Japan is a subsidiary of FTX Trading, a major crypto asset exchange. Despite the bankruptcy of its parent company in 2022, FTX Japan has managed to maintain its operations by strictly adhering to Japanese exchange and reserve regulations. The company is currently in the process of returning assets to its customers and has successfully returned 80% of fiat and virtual currencies so far.
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