FTX update: Crypto exchange faces $3.7B loss, Japanese arm aims to resume withdrawals

FTX, the once-prominent cryptocurrency exchange that was unable to save itself from bankruptcy earlier this month, faced a carryover federal net operating loss of at least $3.7B, Bloomberg reported Monday, citing court filings . And the minimum state net operating loss carryforward was said to be $715M, according to the document from advisory firm Alvarez & Marsal North America, who said FTX failed to keep reliable books and records. Of note, earlier filings indicated those losses could somewhat offset tax liabilities, Bloomberg added. But some positive developments seem to be taking hold in the midst of the widening FTX debacle. For instance, the exchange's Japanese arm is aiming to resume customer withdrawals by the end of 2022, according to a report by NHK, citing an unidentified FTX Japan executive in an interview. Withdrawals can't be resumed now, though, since FTX Japan shares the same (currently suspended) payment system as FTX. FTX's Japanese subsidiary had about 19.6B yen (US$138M) in deposits as of November 10, a day prior to when FTX and its more than 130 affiliates filed for Chapter 11 bankruptcy in the U.S., as per the report. Still, the demise of Sam Bankman-Fried's crypto empire has potentially touched over 1M creditors, and many customers are still wondering if they'll ever see their money again after FTX's liquidity crunch. Earlier, media reports signaled that FTX owes nearly $3.1B to its 50 biggest creditors .