309Write - FTX Japan studying whether local clients can get their crypto back
The Japan arm of Sam Bankman-Fried’s failed digital-asset exchange is studying whether the FTX bankruptcy filing might affect its ability to return crypto to local clients.
FTX Japan K.K. is in discussions with lawyers about the implications of the collapse of its parent entity and plans to make an announcement once the situation becomes clearer, a spokesman said. The nation’s financial watchdog last week ordered FTX Japan to suspend some of its operations while requiring it to ensure the safety of clients assets.
The sudden collapse of Bankman-Fried’s crypto empire sent shock waves through markets and raised questions about the appropriateness of existing crypto regulations. In Japan, authorities have been moving to loosen rules governing the crypto industry in a quest to spur search of economic growth.
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FTX Japan K.K. released details of its holdings on Monday, joining other exchanges around the world who are attempting to shore up investor confidence by sharing snapshots of their assets and reserves. In a recent thread on Twitter, Crypto.com CEO Kris Marszalek called on the industry to demonstrate a “full and collective commitment” to transparency and to the safety and security of users and funds.
According to the release, which shows a snapshot as of Nov. 11, the Japanese unit’s so-called cold wallets held crypto assets in excess of client assets. Those customers had exposure to 14 different tokens, including Bitcoin Cash and Ripple’s XRP. The amounts held in the wallets should have changed little since, the spokesman said.
FTX Japan had around 19.6 billion yen ($140 million) in cash and deposits as of Nov. 10, according to the release. It also held 10 billion yen or so in net assets at the end of September, it said. The company has suspended customer withdrawals.