FTX Japan, the Japanese arm of the FTX exchange, plans to stop withdrawals by 2023.
According to a statement published by Japan-based news outlet NHK on November 21, FTX Japan is preparing to stop withdrawals. On the other hand, Japan’s Financial Services Agency (FSA) has issued a bill of exchange for FTX Group’s more than 130 related companies in the US, including FTX Japan Holdings, FTX Japan and FTX Japan Services, before FTX declared bankruptcy. He had requested that he suspend his work orders on Nov.
On November 10, the FSA announced that it was taking administrative action against FTX Japan when FTX faced liquidity issues. The orders required FTX Japan to suspend over-the-counter (OTC) derivatives trading, related earnings, as well as new assets from users from November 10 to December 9, unless otherwise specified by the financial regulator. FTX Japan was also supposed to have submitted its plan for how the exchange aims to protect investors and provide transparency about the ongoing situation by November 16.
Citing an unnamed executive at the Japanese stock exchange, NHK noted that FTX Japan had roughly $138 million ($19.6 billion) at the time, as of November 10, when it ceased operations. On the other hand, it was reported that the Japan-based company, FTX Trading, was also put up for sale during the bankruptcy proceedings in the USA.
Other related companies of FTX have also taken similar measures in response to the ongoing litigation against the exchange. Liquid, another related Japan-based company of FTX Group, announced on November 20 that it has stopped all types of transactions on its platform as it filed for bankruptcy under Article 11. LedgerX, owned by FTX US under West Realm Shire Services, may be exempted as a debtor in FTX’s filing for bankruptcy.