FTT explodes by nearly 28% following FTX Japan's announcement of crypto withdrawal resumption

FTX saga took a turn for the good on Monday after one of its bankrupt entities announced the fulfillment of its commitment from weeks ago. While the John Ray-led company is still figuring out its customers' recovery, the Japanese arm of FTX is on its way to reversing the customers' losses.

FTX Japan to initiate withdrawals

After almost three months of shutting down withdrawals, FTX Japan announced that starting Tuesday, February 21, the company will resume the service. The Japanese establishment of the bankrupt crypto exchange was among the hundreds of companies that filed for bankruptcy after FTX's collapse.

The management team of FTX Japan stated that customers would be able to withdraw their fiat and crypto assets using the platform Liquid Japan. The company announced its partnership with Liquid not too long after its bankruptcy back in November 2022. 

Customers are required to have a Liquid Japan account which will be used for transferring their assets out of FTX assets. This can be done after the customers confirm their balance. Although FTX Japan stated there could be some hiccups during the withdrawals thanks to a large number of requests.

On the other hand, FTX bankruptcy claims are appearing on private over-the-counter markets now. These claims are going for as low as 15 to 20 cents on the dollar. The public accounts before these also valued FTX's distressed assets at a similar price of 16 cents on the dollar.

FTT price rallies following the announcement 

FTT price reacted to the news of the resumption of withdrawals for FTX's Japan arm. The altcoin noted a sudden spike in its trading price as FTT jumped from $1.592 to breaching the $2 mark. 

FTT/USDT 1-day chart

Marking an almost 28% increase in price during the intra-day trading hours, the cryptocurrency nearly recovered the 25% losses from earlier this month. However, the rally was short-lived as the cryptocurrency came back down at the time of writing to trade at $1.744.