Against the backdrop of the FTX liquidity crisis that led to the halt of withdrawal on the crypto exchange, the Japanese subsidiary which is a subset of the bankrupt FTX has rolled out plans to resume withdrawals for customers.
— FTX Japan (@FTX_JP) December 1, 2022
It is noteworthy that the Japanese subsidiary is among the 134 companies that were negatively affected by the FTX debacle.
Meanwhile, the firm on Dec. 1 asserted that its due diligence report shows that it is not affected by the bankruptcy filing by FTX. As a result, the withdrawal option will soon be activated for its customers.
The exemption of the Japanese subsidiary from the main firm FTX was ascertained by Landis Rath & Cobb LLP, the law firm standing for FTX Group in the Chapter 11 bankruptcy proceeding.
Recall that the FTX Japan was launched in June this year following the acquisition of Japanese crypto exchange Liquid.
FTX is pleased to announce the acquisition of the Liquid group of companies, including an FSA-registered crypto-asset exchange to provide products and services to our customers in Japan! 🇯🇵https://t.co/rO5TznWFCU
— SBF (@SBF_FTX) February 2, 2022
It should be noted that FTX Japan suspended withdrawal on Nov. 10 due to the liquidity crisis of FTX.
Sam Bankman-Fried Under Severe Pressure
It appears that the former golden boy in the crypto space Sam Bankman-Fried (SBF) is having a tough time following a series of backlashes and lawsuits meted out against him.
On Dec 1, Galaxy Digital CEO Mike Novogratz alleged that SBF and his cohorts engaged in coordinated fraud and should be jailed.
In case you were wondering how I felt about this fiasco. https://t.co/cRKzSuTvoO
— Mike Novogratz (@novogratz) December 1, 2022
Novogratz made the comment in reaction to the statement made by SBF during a recent interview with Andrew Ross Sorkin at the New York Times annual DealBook Summit. SBF asserted then that he didn’t attempt any fraud.
In the same vein, Kraken crypto exchange co-founder Jesse Powell criticized SBF for misplacing the doctrine behind margin trading. He explained that the crypto exchange does not operate on a net account equity model.
SBF is completely full of shit about how margin trading works. He's saying that the whole exchange operated on a net account equity model and anybody could borrow anything (in any amount?) from client funds or from nowhere. That's not how it should work.https://t.co/3k7PkbAHVM
— Jesse Powell (@jespow) December 1, 2022
It is noteworthy, however, that several legal professionals have queried why SBF’s lawyers allowed him to grant an interview because most of his statements were regarded as self-indicting.
Meanwhile, SBF is slated to have another interview with the creator of BitBoy Crypto, Ben Armstorng on Dec. 3 via Twitter Spaces event.
I’m going to hold off on sharing more for now. I’m going to schedule a Twitter spaces for tomorrow with @SBF_FTX. If he shows he does. If he doesn’t, then we are going to do a huge evidence dump.
For now all I will do is release the convo verifying he agreed. pic.twitter.com/S6lWqLji5p
— Ben Armstrong (@Bitboy_Crypto) December 2, 2022