The FTX-owned Japanese crypto exchange Liquid has announced plans to begin the process of returning customer assets in 2023.
The exchange is preparing to return assets given to it by both customers from FTX Japan and Liquid Japan, according to a statement posted on its blog on December 29.
The exchange is also working on a report for January 2023 that would provide more information. According to a team statement:
“For the assets entrusted to us by our customers at FTX Japan and Liquid Japan, we are proceeding with system development so that withdrawals will be possible from the Liquid Japan web version.”
Users who are unable to access FTX will be able to check their FTX Japan balance on the Liquid Japan website and also make withdrawals from there, according to Liquid.
However, it’s anticipated that users of the Liquid Japan platform would still be able to withdraw money. In relations, the exchange told its users on Twitter on December 13 that they were working with FTX Debtors and that it had not forgotten about its customers.
Following the liquidity crisis that its parent firm FTX was experiencing, the exchange stopped all withdrawals on November 15. On Nov. 21 shortly after, the exchange ceased all trading activities on its platform under the direction of FTX Trading.
The statement also claims that due to FTX’s Chapter 11 bankruptcy filing, Liquid Exchange halted “all types of trade.” According to a source, because the company failed to release assets from custody to creditors, Japanese authorities extended the original time limit by three months and pushed back FTX Japan’s suspension deadline to March 9, 2023.
The Financial Services Agency (FSA) of Japan first asked FTX Japan to halt business orders by December 9 in mid-November. Through its Japanese operating organization, Quoine Corporation, Liquid, a cryptocurrency exchange created in 2014, has obtained a license under the Payment Services Act of Japan. As previously reported, in February 2022, FTX bought the exchange’s Group and its affiliates
