FTX Japan, a subsidiary of cryptocurrency exchange FTX, plans to resume withdrawals by the end of 2022.
According to a report on Sunday from Japan-based news agency NHK, FTX Japan is making preparations to resume withdrawals.
Japan's Financial Services Agency (FSA) had asked the exchange to suspend work orders on November 10, before the FTX Group declared bankruptcy in the US for more than 130 related companies, including FTX Japan Holdings, FTX Japan and FTX. Japan Services, according to Coin Telegraph.
On November 11, the FSA announced that it had taken administrative action against FTX Japan amid reports that the parent company was facing credit doubts.
The orders required FTX Japan to suspend OTC derivatives transactions and related margins as well as new deposits from users from November 10 to December 9 unless otherwise directed by the financial regulator.
FTX Japan should also have submitted a plan by November 16 on how the exchange will protect investors and provide transparency about the current situation.
Citing an unnamed executive at the Japanese stock exchange, NHK news agency reported, FTX Japan had approximately 19.6 billion yen in cash — more than $138 million — as of November 10 when it ceased operations.
It was also reported that the Japan-based company was up for sale amid FTX Trading's bankruptcy proceedings in the US.
Other FTX affiliates have taken similar actions in response to ongoing litigation against the company. Liquid, another subsidiary of the Japan-based FTX Group, announced on November 20 that it was temporarily halting all forms of trading due to the company filing for Chapter 11 bankruptcy.
