FTX's Japanese division ordered by financial regulator to halt business operations

FTX Japan, the Japanese unit of Sam Bankman-Fried's FTX cryptocurrency exchange, has been ordered by the country's Financial Services Agency to suspend business operations, according to a Thursday statement . The move comes as SBF's crypto empire implodes in the midst of its liquidity crisis spurred from a report that scrutinized the finances of FTX's sister company, Alameda Research. Shortly thereafter, FTX signed a non-binding deal to sell its non-U.S. business to rival Binance earlier this week, but the former stepped away from the agreement just a day later, citing FTX's "issues are beyond our control or ability to help." Effective immediately, FTX Japan is expected to pause its crypto asset exchange business and stop onboarding new customers until December 9, the FSA said. Apparently FTX Japan halted customer withdrawals without disclosing a date for reinstatement while adding new customers to the trading platform, the statement noted. The suspension order coincided with a "business improvement order" requiring FTX Japan to identify users accurately and "appropriately disseminate information to users regarding the protection of their assets." FTX did not immediately respond to a request for comment by Seeking Alpha. Earlier, FTX used over half of its customer assets to fund risky wagers .