Japanese crypto exchange bitFlyer has successfully acquired FTX Japan, making it a fully owned subsidiary. The deal was finalized on July 26, giving bitFlyer 100% ownership of FTX Japan’s shares.
In a press release, bitFlyer announced plans to rebrand FTX Japan as “Custody New Company” by August 26, 2024. This new entity will focus on expanding bitFlyer’s crypto custody business, using the company’s existing resources and advanced wallet technology.
“We aim to achieve sustainable growth by acquiring FTX Japan,” bitFlyer stated. “We will develop new services that benefit all stakeholders of the bitFlyer Group.”
bitFlyer Focused on Institutional Investors
The Custody New Company will target the growing demand for secure crypto asset management among institutional investors. bitFlyer plans to provide advanced crypto custody and crypto asset ETF-related services, leveraging its expertise in blockchain technology and security.
While the financial terms of the acquisition were not disclosed, bitFlyer hinted at exploring services related to cryptocurrency derivatives ETFs. These offerings are pending further legislative developments in Japan, including tax regulations. The goal is to meet the needs of financial institutions and trust banks.
Background of FTX Japan
FTX Japan has been under Chapter 11 bankruptcy protection since November 2022, following the collapse of its parent company, FTX. The U.S. Court of Insolvency issued a sale order on July 16, 2024. Despite its initial success, FTX Japan faced significant challenges after its parent company’s downfall, which was marred by allegations of embezzlement and misappropriation of funds.
FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison and ordered to reimburse $11 billion.
