FTX Japan Users Withdraw Funds Amidst Legal Battle
Rebeca Moen Mar 04, 2023 09:34
FTX Japan users have begun withdrawing all their funds after the slowdown in fund withdrawals due to Binance liquidating its FTX Token (FTT) holdings. While FTX Japan resumed withdrawals on Feb. 21, the legal battle with Sam Bankman-Fried (SBF) continues.
The legal battle between FTX and Sam Bankman-Fried (SBF) has been ongoing, leaving FTX customers worldwide uncertain about the future of the exchange. In the midst of this, FTX's subsidiary, Liquid Group, a Japanese crypto trading platform, had to halt withdrawals on Nov. 15, 2022. This was due to Changpeng Zhao, the CEO of Binance, announcing the liquidation of its substantial holdings of FTX Token (FTT), which caused a domino effect and led to the slowdown in fund withdrawals by FTX and its subsidiaries.
FTX Japan users have had to endure the frustration of not being able to access their funds for months. However, on Feb. 21, 2023, FTX Japan resumed withdrawals, which involved moving the funds from the defunct exchange to a Liquid Japan account. This news came as a relief to many investors, and it was soon followed by reports that a popular crypto trader from Japan, Hibiki Trader, had successfully withdrawn all of their funds.
The withdrawal of funds by FTX Japan users is not surprising, considering the uncertainty surrounding the legal battle between FTX and SBF. FTX is a well-known cryptocurrency exchange, and any negative news can impact user trust and confidence. Additionally, the slowdown in fund withdrawals caused by Binance's liquidation of FTT holdings had a ripple effect on FTX and its subsidiaries, resulting in delayed access to funds for many customers.
It is important to note that the legal battle between FTX and SBF is not related to the slowdown in fund withdrawals or Binance's liquidation of FTT holdings. The litigation is a separate issue that has been ongoing for some time, and its resolution is still unclear. FTX customers worldwide are eagerly awaiting a conclusion to the legal battle, which will hopefully bring some clarity and stability to the exchange.
In conclusion, the withdrawal of funds by FTX Japan users is a reflection of the impact of negative news and uncertainty in the cryptocurrency market. The legal battle between FTX and SBF and Binance's liquidation of FTT holdings have added to the existing market volatility and has resulted in delayed access to funds for many FTX customers. It remains to be seen how the legal battle will be resolved and what the future holds for FTX and its customers.
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