Japanese cryptocurrency exchange BitFlyer announced on Thursday (20th) that it has agreed to acquire the Japanese subsidiary of bankrupt exchange FTX, FTX Japan.
According to the press release, BitFlyer has reached an agreement with FTX Japan’s parent company to acquire 100% of FTX Japan’s shares. However, FTX Japan is still subject to the procedures of the US bankruptcy court, and the transaction requires approval from the US court. Once the acquisition is completed, FTX Japan’s bankruptcy protection case will be revoked.
BitFlyer plans to transfer FTX Japan’s customer accounts to BitFlyer upon completion of the acquisition and obtaining the consent of the relevant customers. FTX Japan will also be renamed and its core business will focus on new cryptocurrency asset custody services. The announcement stated that the company “will provide services related to cryptocurrency spot ETFs based on its core business”, provided that the corresponding legal system is established in Japan in the future.
According to the press release, as of March 2024, BitFlyer is custodian of over 900 billion Japanese yen (about $5.6 billion) in assets. The company believes that through this acquisition, it will be able to leverage the synergies within the BitFlyer group to develop new services and promote sustainable and further development. BitFlyer also stated that it will continue to hold the “cryptocurrency trading service provider” and “Class I financial instruments business operator” licenses of FTX Japan, depending on the circumstances.
