BitFlyer Holdings has officially announced its acquisition of FTX Japan, the Japanese arm of the collapsed crypto trading platform FTX. After the acquisition, FTX Japan will transition from being a crypto exchange to providing institutional-grade crypto custody services. The company will be initially rebranded as New Custody Company, with the final name yet to be determined. BitFlyer mentioned that they aim to offer services related to crypto exchange-traded funds (ETFs) once they are approved in Japan. The acquisition reportedly cost BitFlyer billions of yen.
FTX Japan, formerly known as Liquid, was acquired by FTX exchange in early 2022 and rebranded as FTX Japan. However, the FTX empire collapsed in November 2022. FTX Japan later clarified that its customers’ assets were not part of FTX’s bankruptcy proceedings and resumed withdrawals, ultimately repaying its customers in February 2023.
It’s worth noting that FTX was actively acquiring crypto companies in 2022, including the $1.4 billion purchase of Voyager Digital in October. Following FTX’s bankruptcy, a U.S. judge authorized a $450-million settlement agreement with bankrupt Voyager.
In recent news, FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison in the United States after being convicted on seven felony charges.