BitFlyer has finalized its acquisition of FTX’s Japanese division, purchasing all outstanding shares of FTX Japan.
The parent company of the self-titled cryptocurrency exchange, Bitflyer, with its headquarters in Tokyo, announced that it has successfully acquired FTX’s Japanese branch, purchasing all of the firm’s outstanding shares.
BitFlyer announced plans to incorporate FTX Japan into its operations and renamed the acquired company “Custody New Company” by August 26 in a press statement on Friday. The new company’s primary goal is to grow bitFlyer’s cryptocurrency custody business by utilizing its present operational capabilities and wallet technology.
There was no disclosure of the acquisition’s financial details. In addition, the news release states that “once the legal system, including tax regulations, is in place in Japan,” the unidentified custodian will investigate services about actual cryptocurrency exchange-traded funds. BitFlyer:
“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.”
Before this acquisition, FTX Japan Holdings owned the entire company. Since November 2022, FTX Japan has been protected by Chapter 11 bankruptcy. After declaring bankruptcy, the Japanese arm maintained client asset management but stopped exchange activities.
Allegations of fraud and misappropriation of billions of dollars in client funds by FTX’s founders and connected hedge fund Alameda Research led to the company’s collapse in late 2022. The exchange’s creator, Sam Bankman-Fried, was ordered to repay $11 billion and received a 25-year sentence.
