Good news for FTX Japan and Celsius users
Withdrawal services will be provided through Liquid Japan, and customers who had funds in their account at FTX Japan will need to confirm their account balance before using this service. Therefore they will need to open or confirm a Liquid Japan account. Customers eligible to withdraw have been notified via email. Withdrawals will take some time to process due to the likely rush of requests from a large number of customers. FTX Japan has created a FAQ page dedicated to all questions and procedures for returning assets. Although this announcement is aimed only at Japanese customers, it is certainly positive news and bodes well for users in other countries as well.
Good news also comes from Celsius, after a U.S. bankruptcy judge ruled that Celsius owns the cryptocurrencies that customers deposited to Earn Accounts because they gave up legal rights to their funds by using the platform.
Celsius published a debtors’ statement according to which it will follow a corporate reorganization plan sponsored by NovaWulf Digital Management. It is written:
“Because most of the other bids the Debtors received contemplated variations of a liquidation plan, the Debtors believe that the agreement with NovaWulf maximizes the value of the Debtors’ assets and will ultimately bring these chapter 11 cases to a successful conclusion. “
NovaWulf also tweeted about Celsius today.
Those who held funds on Celsius at the time of the bankruptcy should be able to recover some (if not all) of them according to the following subdivision:
- Up to $5,000 of equivalent value in Earn (convenience class): immediate refund equal to 70% of the amount in BTC, ETH or USDT.
- Over $5,000 of equivalent value in Earn: repayment in liquid assets to be defined plus shares of the new company, so as to potentially be able to recover 100% of the capital.
- Those with an amount between $1,000 and $5,000 can decide not to be included in the convenience class, opting for the solution provided for those with over $5,000 in credit.
- Conversely, those exceeding $5,000 can still choose to fall into the convenience class, reducing their claim to the maximum limit of $5,000.
For more information click here. A precise date on which the liquidations will start has not yet been set; however, it should be after June 2023. According to a paper published by the Bank for International Settlements, poor investors of emerging economies were hit harder by crypto crashes like FTX or TerraUSD. The worst affected countries would be India, Turkey and Pakistan.
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