Disgraced cryptocurrency trading platform FTX has seen thousands of users at its Japanese sister company withdraw funds since Tuesday.
The subsidiary firm announced on Wednesday that its crypto holders and investors at Liquid Global withdrew nearly 6.6 billion Japanese Yen, or $50 million USD.
Reclaiming both fiat and crypto tokens, 7,026 accounts transferred funds from FTX Japan to Liquid Global. 1,947 users withdrew fiat currencies and 5,697 withdrew cryptocurrencies, it stated.
People withdrawing their funds from FTX Japan are required to confirm account balances to transfer their assets to Liquid accounts.
The news comes after the collapsed US crypto firm filed bankruptcy proceedings in mid-November. FTX Japan later froze millions in assets to over 9 million holders, totalling around $138 million USD after halting withdrawals, a NHK report revealed.
Japan currently plans to ease regulations on cryptocurrency tax regimes to boost the nation’s position as a global fintech hub. As people on the FTX platform pull out their funds from the bankrupt exchange, future investors may look to a more mature domestic market to invest their crypto assets.
