FTX Japan officials have recently filled their investors and users with joy making an announcement on the part of the withdrawal.
The exchange officials have revealed that they are planning to re-enable the withdrawal access for the users. Seems like the exchange has helped keep the FTX brand keep face amidst the disappointment.
From November 7, the FTX brand has also only come up with negative news for the entire cryptocurrency industry. Its collapse on November 10 has launched a contagion that is still very effective.
So far, multiple cryptocurrency firms have filed for bankruptcy and the list is still growing bigger.
With every update coming in about the FTX brand, the trading price of the exchange’s native token “FTX Token – FTT” has continued declining.
FTX Japan to Enable Withdrawals
As the FTX Trading Inc. brand filed for Chapter 11 bankruptcy on November 10, 2022, it took the entire cryptocurrency industry by surprise.
However, the situation did not end there because all the companies owned by the FTX brand had to comply with the exchange’s bankruptcy.
Therefore, all the entities operating under the FTX brand had to stop their operations and that is what FTX Japan did. FTX Australia and many more subsidiaries of the FTX brand ended up filing for bankruptcy.
If they did not file bankruptcy, then they ceased their operations. However, FTX Japan was highly concerned about the funds of the investors as it was also facing a lot of pressure from the Japanese regulators.
A few days back, the exchange hinted that it was in the process of releasing the funds it had held of the investors. They were working on enabling the withdrawal option so the investors could withdraw their funds.
The exchange has updated the users that it may soon be able to re-enable the withdrawal option for the investors.
A Good News for the Japanese Investors
While the entire cryptocurrency industry is filled with uncertainty and negative news, it is positive news for Japanese investors.
According to market observers, the Japanese investors who were connected with the FTX brand are the luckiest. They are the first group of investors who are getting their funds back from FTX.
FTX had several hundreds of cryptocurrency entities operating in different parts of the world. As FTX filed for bankruptcy, all the companies functioning under it were rendered defunct.
Since then, the investors have been demanding their funds be released but none of them have been able to get them.
Then come the Japanese investors who are soon to get their hands on their rightful funds.
Pressure from the Japanese Regulators
Just as the FTX exchange started to face financial issues and the value of the FTT plummeted, the Japanese regulators proactively took an action against FTX Japan.
They requested the exchange to cease its operations and release the funds belonging to the investors. The exchange did comply with the operational shutdown request.
By the time the exchange worked at the request of the Japanese regulators, FTX had filed for bankruptcy. Therefore, the exchange could not release the funds to the users as the withdrawal option had to be revoked.
Sam Bankman-Fried Deceived the investors
Despite making several claims, every company operating under the FTX brand ended up collapsing. When the
FTX International exchange faced a financial crisis, Bankman-Fried assured the investors that their funds were safe under other exchanges run by FTX.
The investors from the United States investing in FTX US were the most concerned group when the FTX International incident took place.
Sam Bankman-Fried did assure the investors that the FTX US was not impacted because it was independent. However, the FTX US exchange also filed for bankruptcy on November 14.
The entire crypto industry was devastated and Sam Bankman-Fried not only destroyed his own image but also the image of the entire FTX brand.
As a result, the value of the FTT also continued to take a major hit. However, the recent announcement from FTX Japan has helped FTT as its value has surged 1.78% in the past 24 hours.