BitFlyer Holdings to Acquire FTX Japan Amid Ongoing Bankruptcy Proceedings

• BitFlyer Holdings is preparing to acquire the Japanese division of the bankrupt crypto platform, FTX.
• The merger, reported by Nikkei, is nearing completion.
• BitFlyer’s acquisition deal, estimated in billions of Japanese yen, has significant implications for the crypto market.

BitFlyer Holdings finalizes plans to acquire FTX Japan, in a strategic move set to reshape the local crypto industry. Learn more about the transaction, its financial details, and future implications for institutional investors.

BitFlyer Holdings to Acquire FTX Japan

BitFlyer Holdings is on the verge of acquiring FTX Japan in a deal that reflects the exchange’s market valuation in billions of yen, translating to tens of millions of dollars. This acquisition aligns with ongoing bankruptcy proceedings of FTX in the United States. BitFlyer plans to purchase all shares of FTX Japan and assume control over its operations, marking a significant shift as FTX Japan transitions towards focusing on crypto asset management or custody, targeting institutional investors.

FTX introduced its Japanese unit in June 2022 by acquiring fintech company Liquid Group and its subsidiaries, including Quoine Corporation. These strategic moves set the groundwork for FTX’s operations in Japan before its eventual bankruptcy later that year.

Impact on FTX Japan Operations

Amidst the bankruptcy turmoil of November 2022, Japanese authorities mandated FTX Japan to suspend withdrawals and revoked its operating license. Despite the broader FTX insolvency, FTX Japan maintained that customer assets were separate from the bankruptcy estate. The exchange resumed withdrawals in February through the local platform Liquid, ensuring clients received their funds.

A U.S. court had earlier approved the sale of four key FTX units, including FTX Japan. With 41 interested parties globally, BitFlyer appears to be emerging as the successful acquirer. The focus now shifts to institutional crypto asset management, potentially boosting market stability and trust among professional investors.

FTX Bankruptcy and Creditor Rejections

During this turmoil, FTX’s creditors rejected the platform’s reorganization plan, citing that it did not fulfill Bankruptcy Code requirements, including matters of property rights and debtors’ liquidation analysis. The spotlight remains on how FTX Japan’s acquisition by BitFlyer could set a precedent for handling such complex bankruptcies in the crypto sector.

Conclusion

The acquisition of FTX Japan by BitFlyer Holdings signals a transformative phase for the local crypto industry. By pivoting towards crypto asset management for institutional investors, the deal is poised to enhance market stability and investor confidence. As the acquisition finalizes, stakeholders will closely monitor the implementation and operational changes, anticipating further developments and insights into the future of crypto trading in Japan.