Sam Bankman-Fried company FTX has failed to return assets from the custody to creditors; therefore, Japan’s suspension target date has been postponed by Japanese authorities. The local regulators of Japan have allowed FTX to carry over the issues related to withdrawals until next year.
FTX’s mission to clear debts—
Reuters reported that the Kanto Local Finance Bureau, a local financial regulator operating under the Ministry of Finance of Japan, has stated FTX Japan’s operations.
The Financial Services Agency (FSA) initially requested Sam Bankman- Fried to stop its business orders by December 9. Still, for some reason, the Japanese local regulators had postponed the FTX’s business suspension deadline till March 9, 2023.
The reason for postponing the FTX suspension is that FTX Japan could not return assets to creditors from custody. The Kanto Local Finance Bureau highlighted that FTX Japan would continue its function in Japan to sort out all the issues related to the creditors.
FTX apologizes and Notices Regarding Administrative Disposition and reported, “We are proceeding with the business improvement plan that we submitted to the Kanto Local Finance Bureau on November 16. continues to be out of function across the board, and it is not possible to quickly return the customer’s assets. We deeply apologize to our customers and all concerned parties for the great concern and inconvenience caused by this situation.”
This news arrived in the market after FTX Japan, on December 1, drafted a plan to continue withdrawals. FTX already clarified that the FTX bankruptcy proceeding does not contain customers’ assets. FTX initially planned to continue the withdrawals by the end of 2022.
“Japanese customer cash and crypto currency should not be part of FTX Japan’s estate given how these assets are held and property interests under Japanese law,” FTX stated.
Conclusion
FTX Japan has started functioning according to the motive of clearing the debts. The firm mentioned that they will start proceeding with the operation after December 10 by stopping opening new accounts, suspending trading services on the platform, and ” suspending legal currency deposits and crypto asset storage.”
These 3 are the major initiatives FTX has put forward to accomplish the target.