BitFlyer Holdings, a Japanese cryptocurrency exchange, has announced its plans to acquire the Japanese division of the collapsed crypto trading platform FTX. The acquisition will lead to the rebranding of FTX Japan under a new name, as officially revealed on June 20.
After the acquisition, FTX Japan will transition its core operations from running a cryptocurrency exchange to providing institutional-grade crypto custody services. The new entity, initially named New Custody Company, will cater to the needs of financial institutions, including trust banks. BitFlyer aims to offer services related to crypto exchange-traded funds (ETFs) in Japan once the legal framework, including tax regulations, is established.
As part of the acquisition deal, New Custody Company will transfer customer accounts from FTX Japan to BitFlyer, with the consent of the affected customers. According to reports from the local news agency Nikkei, the acquisition cost BitFlyer billions of yen, equivalent to tens of millions of dollars.
FTX Japan, previously known as Liquid, was acquired by Sam Bankman-Fried’s FTX exchange in early 2022 before being rebranded as FTX Japan. However, following the collapse of the FTX empire in November 2022, FTX Japan assured customers that their assets were separate from the bankruptcy proceedings of FTX. Eventually, withdrawals were reinstated, and customers were reimbursed in February 2023.
In a related development, FTX aggressively expanded its portfolio in 2022, acquiring several crypto companies, including the $1.4 billion acquisition of the crypto brokerage firm Voyager Digital in October 2022. Subsequently, in April 2024, a U.S. judge approved a $450 million settlement agreement with the bankrupt Voyager, authorized by debtors of FTX.
This news comes amidst recent developments, including Bankman-Fried’s sentencing to 25 years in prison in the United States after being convicted on seven felony charges. The cryptocurrency world continues to witness significant changes and challenges, as exemplified by these ongoing events.
BitFlyer a Japanese crypto exchange set to purchase FTX Japan