FTX Japan allows full withdrawal of funds; users rejoice in the ‘escape’

As FTX customers around the world patiently await the legal completion of Sam Bankman-Fried (SBF) in hopes of recouping their investments, FTX Japan users have started withdrawing all their funds.

On November 7, 2022, crypto exchange FTX and its subsidiaries stopped all withdrawals of funds after SBF was accused of misappropriating user funds. The domino effect forced Liquid Group – a Japanese cryptocurrency trading platform owned by FTX since February 2022 – to stop withdrawals on November 15, 2022.

However, much to the delight of some investors, FTX Japan resumed withdrawals on Feb. 21 – which involved transferring funds from the defunct exchange to a Liquid Japan account. Days later, a popular cryptocurrency trader from Japan @Whiskey_bonbon_ confirmed that he had successfully withdrawn all his funds.

A rough translation of the above tweet reads:

“All payments completed! To be honest, at first I felt like I had given up. I would like to express my gratitude to the FTXJP people for their efforts as they know the part that was really overlooked.”

Just a day after resuming fund withdrawals, FTX Japan revealed that around $50 million (6.6 billion yen) had been withdrawn from Liquid Global.

While one community member responded to the development saying, “Congratulations on your breakout! ! !” many have yet to witness a full redemption of their funds. The refund process is expected to come with delays due to the large number of users affected by the FTX-SBF fiasco.

Numerous community members have confirmed that all of their money has been paid. However, FTX investors watching from the rest of the world remain hopeful of a similar outcome.

Related: Sam Bankman-Fried’s Lawyers Request Extension of Bail Condition Proposal

Accumulating the charges against SBF, a federal judge ordered the opening of a superseding indictment containing 12 criminal charges.

As reported by Cointelegraph, U.S. Attorney Damian Williams has charged Bankman-Fried with eight counts of fraud-related conspiracy, as well as four counts of wire fraud and securities fraud.

SBF’s criminal trial in federal court is scheduled to begin in October, while FTX’s bankruptcy proceedings are ongoing in United States Bankruptcy Court for the District of Delaware.