Amid FTX's burning wreckage, Japan outpost promises asset withdrawals in February

Collapsed crypto exchange FTX's Japanese outpost has told customers it will permit them to withdraw assets in February. A Monday post from FTX Japan states the outfit plans to allow withdrawals from an unspecified moment in February, through the Liquid web site. Liquid was a Japanese crypto exchange acquired by FTX in …

[redpawn]

That's Inefficient

Having the government between you and a financial disaster is just inefficient. Take note of how the Greatest Nation on God's Green Earth (USA) does it, so you don't need to set your money on fire to dispose of it.

[Anonymous Coward]

Re: That's Inefficient

But having the government actively involved seems to have saved the Japanese FTX users their virtual bacon.

Ironic, because avoiding government regulation is usually the first argument people bring up when they try to flog you crypto..

[ChoHag]

Re: That's Inefficient

This post is literally, and exclusively, saying that it's precisely these "inefficiencies" which have saved the Japanese customers' money.

So lets focus on America?

Makes perfect sense.

[Cav]

Re: That's Inefficient

Can't you see the sarcasm font?

[Jon 37]

Re: That's Inefficient

I think your sarcasm was too subtle

[Andy The Hat]

If FTX is intrinsically linked to FTX Japan as the umbrella company, and FTX folds, does this not mean those winding up FTX should be deciding where assets are due to be paid to creditors, not FTX Japan? It seems if this process is all "above board" then setting up an off-shore company, offloading assets to the offshore company in the names of the chosen few, then declaring bankruptcy of the umbrella company would be a great way of moving significant assets from person A to person B legally ...

Of course this is irrelevant if the two companies are not one and the same, but then it would seem strange they both folded at the same time ...

Crypto is your friend ... if you're at the top of the pyramid.

[pmb00cs]

My understanding, FTX (the parent company) will need to decide how to assign FTX Japan assets to creditors, but due to regulation from the Japanese Government, FTX Japan has had to keep FTX Japan assets separate from FTX Japan's Customer's assets. The customers still legally own their assets, so FTX cannot assign those assets, and FTX Japan is slightly less of a crypto dumpster fire than every other crypto exchange that has collapsed in a heap off the back of the crypto exchange space imploding spectacularly.

[Jon 37]

If you deliberately transfer money out of a company to protect that money from the bankruptcy, and then the company goes bankrupt, then:

1. That is a crime

2. The judge can and will undo that transaction. You will have to pay it back.

[gnasher729]

It seems that the setup in Japan is different.

In the USA, if you gave them $1,000, then the money was owned by FTX, but they owed you $1,000. Since they are bankrupt, they won't pay the $1,000 or only part of it. In Japan, if you gave them 100,000 Yen, it's your money and it stays your money, even though FTX Japan holds it on your behalf, and since it is your money, you can take it back. About the same as me parking my car in your empty garage; it's my car, and if you go bankrupt, it's still my car and I can take it back.

[Anonymous Coward]

FTX Japan and Liquid Japan will pay out.

But Liquid Global have not given any updates!

What will Japan and Singapore do about this? I traded on Liquid because of registration with Japan but not protected because not Japanese!?