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Japanese cryptocurrency exchange Bitflyer has announced the acquisition of FTX Japan, the Japanese subsidiary of the now-bankrupt crypto exchange, Bitflyer said in an announcement on Thursday.
FTX's spectacular collapse in 2022 sent shockwaves through the entire cryptocurrency industry, leaving many investors scrambling to withdraw their holdings. However, FTX Japan, a separate legal entity, was reportedly solvent at the time of FTX's bankruptcy, with its assets exceeding its liabilities. This suggests that FTX Japan users may be able to access their funds once the acquisition by Bitflyer is finalized.
Bitflyer, a longstanding and reputable Japanese exchange and ranked 22nd globally in trading volume, is one of the first to be licensed in the country. This acquisition strengthens Bitflyer's position as a major player in the Japanese crypto market, while potentially offering FTX Japan users a secure and regulated platform to trade their digital assets.
Bitflyer also said that it "will be able to deliver unique value by offering both crypto custody service and services related to crypto asset spot ETFs under New Custody Company [currently FTX Japan]."
The full details of the acquisition, including the timeline for user fund repatriation, are still being finalized. However, this development marks a positive step for FTX Japan, which has $134 million in user assets.
Meanwhile, FTX account holders elsewhere are set to receive more than 100% of their original claims according to a reorganization plan submitted by the bankrupt exchange, while FTX founder Sam Bankman-Fried (SBF) has been sentenced to 25 years in federal prison.
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