Customer Asset Return Announcement
The FTX-owned Japanese cryptocurrency exchange, Liquid, recently declared an exciting plan to commence returning customer assets starting in 2023. This announcement came in a blog statement on December 29, igniting hope among customers who have been patiently waiting.
System Development for Withdrawals
According to the company, they are committed to creating a streamlined process for asset withdrawals. The statement emphasized that they are undertaking system development that will allow customers from both FTX Japan and Liquid Japan to access their balances through the Liquid Japan website and initiate withdrawals.
How It Works
Essentially, users who previously could not access their FTX accounts will now have a way to verify their balances and carry out withdrawals without needing to jump through a million hoops. The Liquid Japan platform will resume regular withdrawals for those already using it.
Reassurance for Users
On December 13, the team at Liquid reassured their community via Twitter about their ongoing cooperation with FTX debtors to ensure customer needs are being addressed. They stated, “We have not forgotten about our users, and we will provide further updates when we can.” This revelation is a small comfort in a sea of uncertainty, but it shows the dedication of the Liquid team to their customer base.
The Ups and Downs of Recent Events
The saga began back in November when Liquid halted all withdrawals amid a liquidity crisis from its parent company, FTX, ultimately pausing all trading operations shortly after. The decision followed FTX Trading’s Chapter 11 bankruptcy filing, showcasing how interconnected the fortunes of crypto exchanges can be.
Japanese Authorities Stepping In
Meanwhile, Japanese authorities have been on high alert, extending FTX Japan’s suspension deadline due to the firm’s inability to return assets to creditors, which adds another layer of complexity to Liquid’s situation. The Financial Services Agency (FSA) had originally set a firm deadline for December 9, only to push it back three months.
A Brief History of Liquid
Founded in 2014, Liquid operates under Japan’s strict Payment Services Act via its Japanese entity, Quoine Corporation. This lends it a veneer of legitimacy that is crucial in tumultuous times like these. Despite recent challenges following FTX’s acquisition of Liquid Group in February, the exchange is working hard to prove itself reliable to its users.
