The Bahamas-based cryptocurrency platform, FTX, which faced challenges last year, has now permitted certain users to initiate withdrawals, as observed from Nansen’s on-chain data. Previously, the platform had frozen withdrawals due to liquidity problems tied to Alameda. In an unexpected turn, Binance, a competitor, expressed interest in acquiring FTX but retracted their offer within a day.
In a notable instance, one user managed to withdraw ether worth $2.6 million and another extracted $1.3 million in USDC. Withdrawals in November of the previous year amounted to $6.8 million. Yet, a majority of the users are still in limbo, unable to access their funds. This has given rise to theories suggesting biased treatment in favor of specific users or internal staff.
In response, FTX clarified that they’ve initiated the process for Bahamian fund withdrawals in alignment with their local regulations. They mentioned on Twitter: “Following our local regulatory guidelines, we’ve started enabling Bahamian fund withdrawals. This explains the recent transaction activities. However, these constitute a minor part of our current assets. Our team is diligently exploring more options to serve the broader user base. We are also probing into our potential next steps globally.”
FTX’s European Counterpart
FTX’s European offshoot, now operating through ftxeurope.eu, offers an avenue for users to reclaim funds from the ceased crypto service. To proceed, users need to use this website, and the withdrawal requests are subjected to standard verification checks.
As revealed in a recent press statement, FTX Europe has begun the process of disbursing customer funds, ensuring it adheres to Cyprus’s legal regulations. This move by FTX Europe mirrors a similar decision by FTX Japan, which declared its intention to enable withdrawals by mid-February 2023. Addressing the European segment’s activities, the firm assured customers they would receive statements detailing their entitled fiat currency balances, as mandated by Cyprus law. This move came in the wake of FTX Europe’s obligation to reimburse users after their operating license was put on hold by Cyprus’s regulatory authority.
European Withdrawal Criteria on FTX EU
FTX EU has set specific criteria for its clients wishing to withdraw. Only those who’ve opened accounts post-March 2022 qualify. However, certain business associates are exempt from this facility. Before proceeding, customers have to complete standard KYC and AML screenings. The company emphasized, “Withdrawal timelines may be extended if there’s a discrepancy or insufficient verification of the banking or associated account details.” Furthermore, FTX EU proactively reached out to its users through email to guide them through the withdrawal mechanics.
The company announcement clarifies, “Every client of FTX EU LTD can claim their segregated balance in fiat currency from designated customer accounts.” To ensure security, users are prompted to modify their passwords upon visiting the new website. This site operates under the purview of the Cyprus Securities and Exchange Commission.
FTX’s Asian Operations
Last year’s abrupt downfall of the FTX platform left numerous users stranded, unable to access their investments. The unforeseen financial calamity inhibited the exchange from fulfilling withdrawal requests, causing panic among its user base.
Bloomberg Asia highlighted successful withdrawals by Japanese clientele of the distressed exchange. Likewise, users from Vietnam and the Philippines have received communications hinting at an impending refund. This raises questions: Is the Japanese branch resuming operations? The clarity on this is awaited.
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