Withdrawal Frenzy: The Numbers Speak
Since the resumption of withdrawals on February 21, FTX Japan has seen a mass exodus of users seeking to reclaim their funds. An astonishing 6.6 billion yen (approximately $50 million) has been withdrawn, as roughly 7,026 users shifted their assets to Liquid Global. The appeal of Liquidity is hard to overlook, with 5,697 cryptocurrency transactions and 1,947 fiat withdrawals contributing to this rapid migration.
The Process: What Users Had to Do
For FTX Japan users, the withdrawal process wasn’t as simple as clicking a button. Users were required to confirm their account balances and transfer their funds to a Liquid account. This step ensured that transactions were secure and properly tracked before the funds could change hands.
Long Wait: A History of Pain
To understand the urgency behind these withdrawals, it’s crucial to note that FTX Japan was embroiled in bankruptcy proceedings ever since the parent company filed for Chapter 11 in November 2022. During that dark period, FTX froze assets belonging to about 9 million users, leaving many without access to their hard-earned money.
Cash Left on the Table
Prior to freezing operations, FTX Japan reportedly had 19.6 billion yen (over $138 million) in cash reserves. Fast forward to the present, and estimates suggest that around $90 million may still be available for the users in the wake of the ongoing turmoil. Those are some juicy numbers for anyone waiting to reclaim their gatherings.
The Legal Labyrinth: What’s Next?
Now, as FTX Japan continues to process withdrawals, the parent company remains in a legal quagmire in the U.S. Bankruptcy Court located in the District of Delaware. Unfortunately, the judge recently shot down a request to appoint an independent examiner due to the potential costs involved. The saga continues, leaving slight glimmers of hope for a marketplace slowly crawling towards recovery.
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