Japan’s Financial Services Agency requested that the exchange freeze business orders on November 10, before FTX Group filed for bankruptcy in the US.
FTX Japan, a division of the cryptocurrency exchange FTX, is said to be planning to start accepting withdrawals by the end of 2022. NHK, a Japanese news organization, reported on November 21 that FTX Japan has been getting ready to resume withdrawals.
Japan’s Financial Services Agency, or FSA, asked the exchange to freeze business orders on Nov. 10 prior to FTX Group filing for bankruptcy in the US for more than 130 affiliated firms, including FTX Japan Holdings, FTX Japan, and FTX Japan Services.
Following concerns that FTX Japan’s parent firm was “facing credit uncertainties,” the FSA declared on November 11 that administrative procedures had been launched against FTX Japan.
The directives mandated that FTX Japan cease all over-the-counter derivatives transactions, associated margins, and new customer deposits from November 10 to December 9 unless the financial regulator gave other instructions. Additionally, FTX Japan was required to provide a strategy by November 16 outlining how it intended to safeguard investors and maintain transparency regarding the current situation.
NHK stated that FTX Japan had approximately 19.6 billion yen in cash (more than $138 million) as of Nov. 10 when it suspended operations, citing an unnamed executive at the Japanese exchange. In addition, it was rumored that the Japan-based business was up for sale as FTX Trading was going bankrupt in the US.
In reaction to ongoing legal action brought against the corporation, other FTX subsidiaries have made comparable decisions. On Nov. 20, Liquid, a Japanese-based subsidiary of FTX Group, declared that it had suspended “all forms of trading” as a result of the company filing for Chapter 11 bankruptcy. LedgerX, held by FTX US under the name West Realm Shire Services, might not be included in the bankruptcy filing of FTX as a debtor.