Japanese crypto giant bitFlyer has finalized the acquisition of FTX Japan, now making it a wholly owned subsidiary.
Bitflyer, based in Tokyo and the parent company of the eponymous crypto exchange, announced that it has completed the acquisition of FTX’s Japanese branch, acquiring 100% of the outstanding shares of FTX Japan.
In a press release on Friday, BitFlyer revealed its plans to integrate FTX Japan into its operations, rebranding the acquired entity as “Custody New Company” by August 26. The new entity is expected to concentrate on expanding bitFlyer’s crypto custody business, utilizing the company’s current operational resources and wallet technology. The financial details of the acquisition were not disclosed.
As stated in the press release, the unnamed custodian will also explore services related to physical crypto exchange-traded funds, once the legal framework, including tax regulations, is established in Japan.
“By acquiring all shares and management rights of FTX Japan, we aim to achieve sustainable growth, leveraging synergies within the bitFlyer Group to develop new services, benefiting not only FTX Japan and its customers but all stakeholders of the bitFlyer Group.”
BitFlyer
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FTX Japan, previously owned by FTX Japan Holdings, had entered Chapter 11 bankruptcy protection in November 2022. The Japanese arm halted its exchange operations after filing for bankruptcy but continued to manage customer assets.
FTX faced a collapse in late 2022 amidst allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund Alameda Research. Sam Bankman-Fried, the founder of the exchange, was sentenced to 25 years in prison and ordered to repay $11 billion.
Read more: FTX has billions more than needed to repay bankruptcy victims
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Conclusion
As the crypto industry continues to evolve and expand, acquisitions and mergers are becoming increasingly common. The acquisition of FTX Japan by bitFlyer marks a significant development in the Japanese crypto market, with potential implications for the broader industry.
With bitFlyer’s plans to integrate FTX Japan into its operations and focus on expanding its crypto custody business, we can expect to see new services and innovations in the space. The exploration of physical crypto exchange-traded funds by the newly formed entity signals a forward-looking approach to the evolving regulatory landscape in Japan.
While the collapse of FTX in 2022 was a cautionary tale for the industry, the acquisition by bitFlyer demonstrates a commitment to growth and sustainability. By leveraging synergies within the bitFlyer Group, the aim is to benefit all stakeholders and customers, setting a positive tone for the future of the company.
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