In a significant development within the cryptocurrency sector, bitFlyer, a domestic competitor, has acquired the Japanese subsidiary of FTX Trading. This acquisition comes after FTX Trading filed for Chapter 11 bankruptcy in the United States last year.
FTX Trading, a well-known global cryptocurrency exchange, initiated the bankruptcy protection process in a U.S. court in November of last year, impacting around 130 group companies. This bankruptcy, one of the largest in the industry, resulted in FTX Japan facing temporary asset withdrawal suspensions and partial operational shutdowns as ordered by Japanese financial authorities.
Amidst these challenges, FTX Japan actively sought a buyer, and it appears that bitFlyer’s parent company has emerged as the frontrunner in acquiring FTX Japan, according to reliable sources. The acquisition process is currently underway, with bitFlyer expected to purchase all shares of the Japanese subsidiary. The deal is estimated to be valued at several billion yen.
This acquisition takes place during a period of significant growth in the Japanese cryptocurrency market. According to the Japan Cryptocurrency Exchange Association, the number of cryptocurrency accounts in the country exceeded 10 million by the end of April this year, a figure that has more than tripled in the past five years. Despite this growth, concerns surrounding user safety and protection persist.
bitFlyer’s successful acquisition of FTX Japan marks a pivotal moment in the Japanese cryptocurrency landscape. As the industry continues to expand, the focus on user safety and regulatory compliance will remain crucial. The acquisition is expected to strengthen bitFlyer’s market position and offer a stable platform for former FTX Japan users.
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