Last updated on July 30th, 2024 at 12:06 pm
BitFlyer, the Tokyo-based parent company of the eponymous cryptocurrency exchange, has finalized its acquisition of FTX’s Japanese division, purchasing all outstanding shares of FTX Japan.
In a press release published today Friday, July 26, BitFlyer announced its plans to integrate FTX Japan into its operations and rebrand it as “Custody New Company” by August 26. The newly named entity will focus on enhancing BitFlyer’s crypto custody services, utilizing the company’s existing resources and wallet technology. Financial details of the acquisition have not been disclosed.
The press release also revealed that the new entity would explore offering physical crypto exchange-traded funds, contingent on the development of appropriate legal and tax frameworks in Japan.
BitFlyer stated that by acquiring FTX Japan and its management rights, it aims to foster sustainable growth and leverage synergies within the BitFlyer Group to introduce new services, benefiting both FTX Japan’s customers and the broader BitFlyer stakeholder community.
This acquisition follows FTX Japan’s bankruptcy filing under Chapter 11 of the US Bankruptcy Code. The sale was approved by the US Bankruptcy Court for the District of Delaware on July 16, 2024, resulting in the transfer of FTX Japan’s management to BitFlyer Holdings Inc.
This management shift has considerable implications for both BitFlyer and the wider cryptocurrency sector. FTX collapsed in late 2022 due to allegations of embezzlement and the misappropriation of billions in customer funds by its owners and the affiliated hedge fund, Alameda Research. Sam Bankman-Fried, the exchange’s founder, was sentenced to 25 years in prison and ordered to repay $11 billion.
Meanwhile, Japan appears to be the newest hotspot for crypto compaines. Asset managment firm Franklin Templeton recently partnered with Japanese giant SBI Holdings to create a new joint entity that will manage and issue cryptocurrency exchange-traded funds (ETFs). This collaboration could pave the way for the approval of crypto ETFs in Japan, though the Financial Services Agency has yet to make a final decision on the product.
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