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.'

Read more of this story at Slashdot.