More than 7,000 investors rushed to withdraw their money from FTX Japan.
Thousands of FTX Japan customers have withdrawn nearly $50 million worth of assets from the exchange.
According to a withdrawal report shared by FTX Japan, 7,026 customers have moved their funds to Liquid Global. The details regarding the matter were issued on February 22nd, less than 24 hours after withdrawals had resumed.
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The report revealed that the $50 million (or 6.6 billion yen) worth of withdrawals were completed in 5,697 transactions involving crypto and 1,947 transactions in fiat. After a three-month pause, the withdrawal process from FTX Japan resumed on February 21st, 2023, at 3:00 AM UTC.
When its parent firm FTX filed for bankruptcy, FTX Japan also slammed the brakes. FTX Japan held an estimated $138 million in assets when it stopped its operations. Therefore, it can be estimated that as of February 22nd, at least $90 million worth of assets is left in the exchange.
FTX investors in the United States and around the world have not been able to access their funds since November 2022. The FTX case is currently under investigation by the United States Bankruptcy Court in Delaware. Thus far, the judge has denied a motion to appoint an examiner due to the cost.
On top of that, FTX administrators are in a legal battle over around $3.5 billion worth of crypto held by the financial regulator in The Bahamas. It is believed that these assets belong to FTX customers.
The collapse of FTX has also forced other firms to file for bankruptcy. For example, digital asset lender BlockFi filed for bankruptcy due to its closeness to FTX. When FTX faced problems, BlockFi issued loans to Sam Bankman-Fried’s Alameda Research.