After all, FTX has been in the news for the crypto exchange’s subsidiary company in Japan, confirming their plans to go back to business with them being kept away from the chaos and bankruptcy that a significant part of the company is currently facing the United States.
The company is discussing resuming withdrawals after the motion to renew deposits in the company was approved by the parent company currently facing bankruptcy. If. If the plans go smoothly, the Japan branch would be first on the list to return customers’ funds after the company’s collapse.
The company halted all withdrawal activities after they received orders from the local financial authorities asking the crypto exchange company to suspend all services. The. The company’s global enterprise filed for bankruptcy protection in the United States three days later. FTX Japan posted an announcement on their site to notify customers that the company’s bankruptcy lawyers in the United States did not see the need for the Japanese customers to be a part of FTX Japan’s estate in regards to the way the assets are held and the interests of the property concerning Japanese laws.
The subsidiary branch had been working towards the plans for the resumption of withdrawals for the past two weeks. The goal was finally approved by the global management team of FTX trading, with the team at the company already working on ensuring the withdrawals are smooth for users.
The Japan subsidiary is also ready to post information about customers’ assets held in personal wallets and kept in trust by next week. They will release more information about the withdrawals soon.
Does This Mean FTX Global Enterprises is Stable Once Again
Unfortunately, this news does not mean FTX has weathered the storm it is currently in, as it is still bankrupt and facing lawsuits that have been hitting the company and the former CEO for the past few weeks.
The resumption of the Japan subsidiary is to remove the possibility of losses for the customers and to ensure that they can withdraw their assets that were locked in the company when it halted operations.
FTX collapsed in the early days of November, with the CEO stepping down and leaving the role for a Chicago-based lawyer who has a reputation for being able to pull companies out of bankruptcy. FTX has been pulling all the possible stops to stabilize the company’s state. The resumption of the Japan subsidiary must be one of those moves.
So no, this resumption does not mean stability for the company, but it’ll be a good move for customers to get back their assets that were held. It helps restore faith in the company’s ability to pay back investors and customers caught in the web of bankruptcy and shady dealings surrounding its collapse.
What The Stability Of FTX Could Do For The Ecosystem
The company’s collapse hit the crypto industry and was responsible for another decline in the price of coins. It was another major storm for the crypto space to weather. If FTX ever attained stability, it would be advantageous to the crypto market.
FTX was once seen as a significant player in the crypto space. Its crash and subsequent filing for bankruptcy triggered many companies to either lay off workers or pack up to reduce costs or ensure they could stay afloat amidst the bearish trend in the crypto space if it were able to rise from the bottom. Back to the top, it would affect the mood of the market.
The Japanese Subsidiary of FTX has its team working hard on ensuring that in the coming weeks, customers can withdraw their assets locked with the company and be able to go through with this transaction smoothly and put the minds of the customers and investors waiting to be paid at rest, the company will release additional information on the move to resume withdrawals soon.
This may be the first section of the company being able to pay back customers. Still, if the new CEO can save the company from bankruptcy, it may not be the last of the company’s ability to resume customer withdrawals.