bitFlyer Completes Acquisition of FTX Japan
Japanese cryptocurrency exchange bitFlyer has officially completed its acquisition of FTX Japan, making it a fully owned subsidiary. The acquisition was finalized on July 26, with bitFlyer now holding 100% ownership of FTX Japan’s outstanding shares.
Crypto Custody Services Expansion
In a press release on Friday, bitFlyer announced its plans to rebrand the newly acquired entity as “Custody New Company” by August 26, 2024. This new entity will focus on expanding bitFlyer’s crypto custody services, utilizing the company’s advanced wallet technology and operational resources.
“Through the acquisition of FTX Japan’s shares and management rights, we are committed to achieving sustainable growth,” bitFlyer stated. “We will capitalize on synergies within the bitFlyer Group to introduce new services that will benefit not only FTX Japan and its clients, but all stakeholders of the bitFlyer Group.”
The Custody New Company will prioritize meeting the increasing demand for secure crypto asset management, catering to the needs of investors looking for reliable custody solutions.
Institutional Investors Embracing Crypto Assets
As the demand for institutional investors to enter the crypto asset market continues to rise, companies like bitFlyer are adapting their strategies to meet this need. Recognizing the importance of professional security measures, bitFlyer is focusing on providing advanced crypto custody services and crypto asset ETF-related services.
Advanced Security Measures
bitFlyer is leveraging its expertise in blockchain technology and security to address the increasing demand from institutional investors. The company has developed a highly secure wallet that will play a key role in its new crypto custody offerings, ensuring the safety and protection of clients’ assets.
Future Plans and Offerings
While the financial terms of the acquisition remain undisclosed, bitFlyer is looking into offering services related to cryptocurrency derivatives ETFs as part of its expansion strategy. They are closely monitoring legislative developments in Japan, including tax regulations, to ensure compliance with regulations. These offerings are designed to cater to the specific needs of financial institutions and trust banks.
FTX Japan’s Growth
With this acquisition, bitFlyer is poised to strengthen its position in the market and expand its offerings to institutional investors. By focusing on security, advanced services, and regulatory compliance, bitFlyer is well-positioned to meet the evolving needs of the growing crypto asset market.
FTX Japan Bankruptcy and Court Order
On July 16, 2024, FTX Japan was ordered by the U.S. Court of Insolvency to follow a sale order. This came after the Japanese arm of FTX had been under Chapter 11 bankruptcy protection since November 2022, following the collapse of its parent company.
FTX Japan’s Troubled History
FTX Japan was launched in June 2022, after acquiring fintech company Liquid Group and its subsidiaries, including Quoine Corporation. However, just five months later, the parent company collapsed amidst allegations of embezzlement and misappropriation of customer funds.
Founder’s Sentence
FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison and ordered to reimburse $11 billion. This marked a dramatic downfall for a company that had shown promise in the beginning but ultimately faced financial turmoil.
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