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Impact of FTX Collapse, Crypto Platform Kraken Collapses and Closes Operations in Japan

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The recent collapse of FTX has put pressure on crypto exchanges in many countries. One of them is Kraken, a US-based crypto exchange platform closing their operations in Japan. Quoted from finews-asia, it was stated that the company took this step because market conditions were out of control. Moreover, the crypto market is in a bad condition.

Not only that, Kraken will also revoke their operational license at the Japan Financial Services Agency (JFSA) effective January 31, 2023. It was stated, Kraken also announced that their clients could withdraw their funds until a predetermined date.

During this time, users can withdraw their money by withdrawing assets to external wallets and liquidating portfolios and transferring remaining funds to national bank accounts in Japan.

On January 9, Kraken has signaled that the deposit function will be removed from the platform. Although indeed trading functions are still maintained.

Quoted from Kitco News, it was stated that on January 31, 2023 the operational revocation process had been completed. On February 1, 2023 the ownership of cryptocurrency for this non-yen currency will be automatically converted to en.

Kraken also said that if the process is complete, then Kraken can no longer assist the process of withdrawing users' money.

"If you do nothing before January 31, you should coordinate with the law firm to get your money back in yen," they wrote.

The shutdown of Kraken in Japan has further cemented Binance's position as a leading crypto exchange platform. Now Binance has controlled 75% of the crypto market share in Japan.

On November 30, Binance announced it was acquiring 100% of Sakura Exchange BitCoin. In 2018, Binance was forced to leave Japan after JFSA accused the company of operating illegally.

Binance currently has operations in France, Italy, Spain, Bahrain, Abu Dhabi, Dubai, New Zealand, Kazakhstan, Poland, Lithuania and Cyprus.

FTX Boss Buys Robinhood Shares for IDR 8.5 Trillion
FTX founder Sam Bankman-Fried bought a 7.6% stake in Robinhood or the popular stock trading app earlier this year.
Quoted from CNN, Bankman-Fried bought shares with money borrowed from his own company, which prosecutors called illegal. This is because the company is sucking up funds from another company, namely FTX.

In a statement published on Tuesday, Bankman-Fried and fellow FTX founder Gery Wang have withdrawn loans of more than US$ 546 million or the equivalent of Rp. 8.5 trillion assuming an exchange rate of Rp. 15,600 from Alameda Research. They used the money to buy Robinhood stock.

Since leaving FTX Bankman-Fried has repeatedly denied the fraud allegations leveled against him.

But earlier this month Bankman-Fried was arrested at FTX's headquarters in the Bahamas, he was extradited to the US last week.

Then he must appear in a Manhattan court on January 3. Bankman-Fried faces life in prison if convicted.

Bankman-Fried's ownership of Robinhood shares is now a big problem in crypto circles. This is because there are four entities that claim 56 million shares worth around US$ 450 million.

FTX management is now trying to return to attract investors' funds even though the company has gone bankrupt. They want to wrest 90% of the Antigua-based company owned by Bankman-Fried.

BlockFi a leading crypto lending company stopped withdrawing FTX funds. This was done because they were worried about the problems facing FTX.

Even BlockFi sued Bankman-Fried over ownership of shares in Robinhood. BlockFi claims it recorded FTX's debt after Alameda defaulted on US$680 million in collateralized loan obligations.

In the CNBC broadcast, Robinhood CEO Vlad Tenev gave a response regarding this information. He admitted that he was not surprised by Bankman-Fried's ownership of shares in his company, this is because they are a public company.