FTX Japan, the Japanese arm of the beleaguered crypto exchange FTX.com, was ordered by the country’s Financial Services Agency (FSA) to suspend operations until Dec. 9 and put together a “business improvement plan.”
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Fast facts
- FSA claimed that FTX Japan suspended customer withdrawals for an unspecified period without halting new customer registrations, the agency said on Thursday.
- The local finance regulator ordered FTX Japan to come up with a “business improvement plan” by Nov. 16, which should accurately identify its customers, protect user assets, and provide more transparency.
- FTX Japan’s parent company, FTX.com, has been in a dramatic liquidity crisis that would reportedly require US$8 billion to resolve.
- Binance initially offered to buy out the troubled exchange on Wednesday to cover its liquidity shortfall, only to pull out of the deal the next day after reviewing FTX’s finances.
- The U.S. Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission are also probing the insolvent crypto exchange.
See related article: Binance and FTX – Should you be worried?
