BitFlyer Holdings Acquiring FTX Japan
BitFlyer Holdings, a major cryptocurrency exchange in Japan, is in the final stages of acquiring FTX Japan, the local branch of the bankrupt crypto trading platform FTX. The acquisition deal, which has not been publicly disclosed, is expected to be worth billions of Japanese yen, reflecting the exchange’s market value in the millions of dollars. BitFlyer will take control of FTX Japan’s business operations and shares, with plans to pivot the entity towards crypto asset management or custody services, catering to institutional investors.
Acquisition Background
FTX Japan was established in June 2022, just five months before facing bankruptcy. The launch was made possible through the acquisition of fintech company Liquid Group, which included Quoine Corporation, one of Japan’s pioneering crypto exchanges. FTX integrated its products into Quoine’s offerings, effectively rebranding the company as FTX Japan.
- BitFlyer Holdings is in final negotiations to acquire FTX Japan, a subsidiary of the bankrupt FTX Group.
- The acquisition deal is estimated to be worth billions of Japanese yen, translating to tens of millions of dollars.
- FTX Japan is expected to shift its focus to crypto asset management or custody services for institutional investors post-acquisition.
- FTX Japan had to halt withdrawals and had its operating license suspended when its parent company, FTX Group, declared bankruptcy in November 2022.
FTX Group Bankruptcy
Following the bankruptcy of the FTX Group in November 2022, FTX Japan was directed by Japanese authorities to suspend withdrawals and cease operations temporarily. Despite the challenges faced by the parent company, FTX Japan maintained that customer assets were separate from the bankruptcy proceedings, reassured users that their funds would be returned in due course. Subsequently, in late February, the Japanese unit resumed withdrawals, processing user requests through the local exchange Liquid.
- FTX Group’s bankruptcy in November 2022 led to regulatory actions against FTX Japan, including the suspension of withdrawals and operating license.
- FTX Japan resumed withdrawals in late February, with users’ requests being handled through Liquid, its affiliated exchange.
- A U.S. court approved FTX’s motion to sell off several units, including FTX Japan, amidst the bankruptcy proceedings.
- Creditors of FTX rejected the proposed reorganization plan, citing non-compliance with bankruptcy requirements.
BitFlyer Emerges as Potential Buyer
Amidst the bankruptcy proceedings and the sale of assets, BitFlyer has emerged as a strong contender to acquire FTX Japan. The exchange’s interest in expanding its operations and services in the crypto space aligns with the potential acquisition. While the process has been relatively discreet, it is apparent that BitFlyer is positioned to take over FTX Japan, bringing a new direction to the entity’s offerings.
Hot Take: BitFlyer’s Move in the Crypto Market
As a crypto enthusiast, you can observe the dynamic nature of the industry with BitFlyer’s strategic move to acquire FTX Japan amid the parent company’s bankruptcy. This development highlights the resilience and adaptability of players in the crypto market, showcasing opportunities for growth and diversification within the sector. Stay tuned for further updates on how BitFlyer’s acquisition of FTX Japan unfolds and impacts the broader crypto ecosystem.
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