Japanese crypto giant Bitflyer has successfully acquired FTX Japan, making it a fully owned subsidiary and marking a significant step forward in the crypto custody sector.
Bitflyer, headquartered in Tokyo and renowned for its self-named crypto exchange, announced the completion of this acquisition, taking full control of FTX Japan by purchasing 100% of its outstanding shares. This strategic move is set to bolster Bitflyer’s operational capabilities and enhance its service offerings in the cryptocurrency market.
In a recent press release, Bitflyer revealed plans to integrate FTX Japan into its operations under the new name “Custody New Company” by August 26. This rebranded entity will primarily focus on expanding Bitflyer’s crypto custody business, leveraging the company’s extensive operational resources and advanced wallet technology. However, the financial details of the acquisition were not disclosed.
The new custodian entity is poised to explore additional services, including physical crypto exchange-traded funds (ETFs), contingent upon the establishment of a supportive legal framework and tax regulations in Japan. This move aligns with Bitflyer’s vision of achieving sustainable growth by creating synergies within the Bitflyer Group and developing innovative services that benefit all stakeholders.
Bitflyer stated, “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.”
FTX Japan, previously under the ownership of FTX Japan Holdings, has been navigating Chapter 11 bankruptcy protection since November 2022. Despite the bankruptcy, the Japanese arm continued managing customer assets, even as it ceased its exchange operations. This acquisition by Bitflyer is seen as a lifeline, providing a fresh start and new opportunities for FTX Japan’s customers and stakeholders.
The collapse of FTX in late 2022 sent shockwaves through the crypto community, with allegations of embezzlement and misappropriation of billions of dollars in customer funds. The scandal involved FTX’s owners and its affiliated hedge fund, Alameda Research. Sam Bankman-Fried, the founder of FTX, faced severe legal repercussions, including a 25-year prison sentence and an order to reimburse $11 billion.
With the acquisition, Bitflyer aims to rebuild trust and provide robust services to its customers. The company’s focus on expanding its custody services reflects a broader trend in the crypto industry, where secure storage solutions are becoming increasingly vital.
