On November 10, prior to FTX Group’s bankruptcy filing in the United States, the Financial Services Agency of Japan requested that the exchange suspend business orders.
FTX Japan, the Japanese subsidiary of the cryptocurrency exchange FTX, reportedly intends to resume withdrawals by the end of 2022.
NHK, a Japanese news outlet, reported on November 21 that FTX Japan has been preparing to resume withdrawals. On November 10, prior to FTX Group declaring bankruptcy in the United States for more than 130 associated companies, including FTX Japan Holdings, FTX Japan, and FTX Japan Services, Japan’s Financial Services Agency (FSA) requested that the exchange suspend business orders.
In response to reports that FTX Japan’s parent company was “facing credit uncertainties,” the FSA made an announcement on November 11 that it had taken administrative actions against the company. Unless otherwise directed by the financial regulator, the orders required FTX Japan to suspend new user deposits and over-the-counter derivatives transactions from November 10 to December 9.By November 16, FTX Japan should have also provided a plan for how the exchange planned to safeguard investors and provide transparency regarding the situation.
NHK reported, citing an unidentified executive at the Japanese exchange, that FTX Japan had approximately 19.6 billion yen in cash—or more than $138 million—when it ceased operations on November 10.FTX Trading’s bankruptcy proceedings in the United States reportedly included the Japanese company for sale.
In response to the ongoing litigation against the company, other FTX subsidiaries have taken similar actions. Due to its Chapter 11 bankruptcy filing, another Japan-based FTX Group company, Liquid, announced on Nov. 20 that it had halted “all forms of trading. “In the event that FTX US files for bankruptcy, LedgerX, which is owned by the company West Realm Shire Services, may not be listed as a debtor.
