FTX Subsidiary Plans Restarting Withdrawals in Japan, as US Requests Review of Fraud Allegations

"FTX Japan is looking to restart withdrawals," reports CoinDesk, "after a plan to return deposits was approved by its parent, the failed FTX exchange."

"If the plan works out, the collapsed crypto exchange's users in Japan might be some of the first customers to get their money back...." In a notice posted on its website, FTX Japan said it was able to confirm with the company's bankruptcy lawyers in the U.S. that Japanese customers' funds "should not be part of FTX Japan's estate given how these assets are held and property interests under Japanese law." FTX Japan had been working on the plan to restart withdrawals for the last two weeks, and says it was approved by the FTX Trading management team....

"As part of the plan, we are incorporating controls, security audit, reconciliations and reviews to put in place a robust and secure process," the notice said.
Meanwhile, America's Department of Justice "has requested that an independent examiner be appointed to review 'substantial and serious allegations of fraud, dishonesty' and 'incompetence'," reports CNBC: FTX's bankruptcy case demands an independent review, the Department of Justice said, because of allegations of fraud and dishonesty which could damage the entire crypto industry. Andrew Vara, the U.S. bankruptcy trustee for FTX's case, said Sam Bankman-Fried and his team mismanaged the company or potentially engaged in fraudulent conduct.

The DOJ is seeking an independent examiner to investigate what happened...
Former federal prosecutor Renato Mariotti told CNBC that the move "shows a level of interest and attention that they're paying to this that should be troubling to Mr. Bankman-Fried."

Madoff 2.0

[alternative_right]

How much money is going to be left to withdraw after this Ponzi scheme admits that it ran itself into bankruptcy? Someone made it off to Switzerland with suitcases (or USB drives) full of cash and will never face "accountability."

Don't expect fast withdrawls

[jhecht]

Given that the huge mess at the parent FTX, a flock of lawyers will be filing suits over coming days to stop distribution of much money from any part of FTX until the bankruptcy courts can determine more about what money exists, where it is, who has rights to the money, and how much can be clawed back from deposits.

Re:

[mysidia]

Given that the huge mess at the parent FTX, a flock of lawyers will be filing suits over coming days to stop distribution of much money from any part of FTX

Maybe, maybe not. Japan likely learned from Mt.Gox by now, and FTX has to follow Japanese law. If they showed there are debts that cannot be part of a bankruptcy, then they're not: Won't get them off the hook for returning customer property.. failure to return customer property can be a crime. JP authorities may dissolve the corporate veil and pote

SBF

[backslashdot]

Why hasn't that fool been arrested? Surely they can find SOMETHING to arrest the guy. Even a traffic violation will do for now, at least for the cameras. Many people are in jail for stealing less than $1000, for crimes like check fraud etc., but not this jackass who robs billions of dollars and causes people to lose their life savings. He gets to fuck in a harem in the Bahamas?

Re:

[znrt]

tbh, this guy only scammed rich people, they will deal with him, no worries.

but he is not the sole responsible for all those whose greed is in par with their stupidity and thus invested more than they could afford to lose. there is a whole plethora of scammers and the media has been playing along quite enthusiastically, and no one will be accountable. he's just the notorious scapegoat.

Re: SBF

[lostmy4digitUID]

The political recipients of his millions in donations also played a huge role in this. Let's not forget that.

Re:

[mysidia]

They should unwind all donations as fraudulent conveyance...

Re:

[Bradac_55]

Well at least they are Clinton level harem girls instead of Kennedy level hotness.

This means

[hdyoung]

That the number of FTX users in Japan probably totals 5-10 and they can be made whole with the pennies on hand.

SBF is probably trying to reduce the number of countries where he’s exposed to lawsuits. He knows that he’s gonna be wrapped up in the US legal system for the rest of his natural life.

Re:

[znrt]

He knows that he's gonna be wrapped up in the US legal system for the rest of his natural life.

well, he can always run for president ...

Re:

[hdyoung]

Yup. I used to think that only happened in third world countries.

Leap Into Life: American History Edition

[alternative_right]

You might want to look at the organized crime ties of FDR, JFK, and LBJ, as well as the suppression of civil rights by Abraham Lincoln and Dwight Eisenhower. Look up the Pendergast Machine and Tammany Hall, too. Maybe also the origins of the USS Maine explosion, the Gulf of Tonkin hoax, USS Liberty, the mysterious investigation of TWA flight 800, the Fifth Man, and connections between Robert Oppenheimer and Soviet intelligence.

Re:

[ctilsie242]

I wouldn't be surprised if some "financial planners" managed to convince older Japanese to invest in the "new tech stuff". For a number of years, there were a lot of people claiming to be money managers who just talked Bitcoin, and how it was a "sure thing", "too big to fail", and tried to confuse the difference between a bank (which is insured) versus an exchange (which isn't insured and can gox [sic] off into the sunset with one's holdings at any time.)