FTX Japan, which is covered by FTX’s bankruptcy filing, is working to repay user funds.
User payments cannot be processed at this time as FTX Japan uses the same payment system as the headquarters.
FTX Japan Struggling to Process Withdrawals
According to an interview conducted by broadcaster NHK, the Japan arm of bankrupt crypto exchange FTX is set to restart customer withdrawals by the end of the year.
In an interview with an anonymous exchange executive, he said that withdrawals could not be resumed immediately because FTX Japan currently uses the same payment system as its parent company.
However, he added that FTX Japan is preparing for withdrawals to be possible, targeting the end of the year. According to the interview reported by NHK, FTX Japan has deposits of approximately 19.6 billion yen ($138 million).
The exchange was ordered by the country’s Financial Services Agency (FSA) to cease its services on November 10, amid the collapse of Sam Bankman-Fried’s cryptocurrency exchange.
FTX filed for bankruptcy earlier this month and owes $3.6 billion to its creditor list. The company’s highest receivable is $226 million.
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