Japan regulator orders local FTX unit to suspend operations

The Japanese Financial Services Agency предписало the local unit of the FTX exchange to suspend operations and switch to close-only mode (users can close positions, but cannot open new ones).

The restrictions are in effect until December 9. Authorities отметили that the platform halted withdrawals “without indicating a recovery date,” but continues to accept deposits and conduct operations.

According to the заявлению FTX JP, биржа возобновила вывод средств в иенах.

The Turkish unit said it planned to convert users’ balances to Turkish Lira at a 1:1 ratio for subsequent transfer to bank accounts.

We plan to share today our roadmap for sending all remaining Turkish Lira balances and the roadmap for converting users’ crypto balances to Turkish Lira and sending them to bank accounts.

— FTX TR (@FTX_TR) November 11, 2022

On November 6, Binance CEO Changpeng Zhao stated the company’s aim to rid itself of the FTX exchange’s utility token FTT. Assets, together with BUSD, totaling about $2.1 billion, were the result of the company’s exit from its portfolio investment in the platform.

On November 8, Sam Bankman-Fried and Zhao announced a strategic partnership, but on November 10 Binance withdrew from acquiring FTX. The company said it would not be able to resolve the problems facing the exchange.

According to Bloomberg and WSJ, the ‘hole’ in the platform’s balance sheet amounted to $8 billion.

Subsequently, the Bahamas Securities Commission blocked the assets of FTX Digital Markets and affiliated entities, and also suspended the company’s licence in the country.

Earlier, in February, FTX absorbed the Japanese crypto exchange Liquid. In the summer, Bankman-Fried’s company announced the launch of a local subsidiary.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.