FTX Japan allows total withdrawal of funds; users rejoice in the “escape”

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As FTX customers around the world patiently wait for the legal conclusion of Sam Bankman-Fried (SBF) in hopes of recovering their investments, FTX Japan users have started withdrawing all their funds.

On November 7, 2022, crypto exchange FTX and its subsidiaries halted all fund withdrawals after SBF was accused of embezzling user funds. The domino effect forced Liquid Group – a Japanese crypto-trading platform owned by FTX since February 2022 – to suspend withdrawals on November 15, 2022.

However, to the delight of some investors, FTX Japan resumed withdrawals on February 21, which involved transferring funds from the old exchange to a Liquid Japan account. A few days later, a popular crypto trader from Japan @Whiskey_bonbon_ confirmed that he had successfully withdrawn all his funds.

A rough translation of the above tweet reads:

“All payments are complete! To be honest, at first I felt like I gave up. I would like to express my gratitude to the people at FTXJP for their efforts, because they know the part that has really been overlooked.

Just a day after fund withdrawals resumed, FTX Japan revealed that approximately $50 million (6.6 billion yen) had been withdrawn from Liquid Global.

While a community member responded to the development saying, “Congratulations on your escape! ! many have yet to witness a full refund of their funds. The refund process is expected to come with delays due to the large number of users affected by the FTX-SBF fiasco.

Many community members have confirmed that all of their money has been paid out. However, FTX investors watching from the rest of the world are hoping for a similar outcome.

Related: Sam Bankman-Fried Lawyers Seek Extended Bail Condition Proposal

Piling up on the charges against SBF, a federal judge ordered an unsealed replacement indictment containing 12 counts.

As Cointelegraph reported, U.S. attorney Damian Williams charged Bankman-Fried with eight fraud-related conspiracy counts as well as four counts of wire fraud and securities fraud.

SBF’s criminal trial in federal court is scheduled to begin in October, while FTX’s bankruptcy case is pending in the US Bankruptcy Court for the District of Delaware.