BitFlyer FTX Japan Acquisition Now Under Negotiation to Support Japanese Users

Key Points:

• bitFlyer is negotiating to buy FTX Japan for billions of yen and take over all customer accounts.
• FTX filed for bankruptcy in November 2022 amid financial and legal troubles with founder Sam Bankman-Fried’s criminal charges.
• The bitFlyer FTX Japan acquisition aims to ensure FTX Japan customers can continue trading smoothly on bitFlyer’s platform.

bitFlyer, Japan’s largest cryptocurrency exchange, is in advanced negotiations to acquire 100% of FTX Japan shares, effectively taking over all customer accounts from the beleaguered subsidiary of bankrupt FTX Trading.

BitFlyer FTX Japan Acquisition Negotiated

The bitFlyer FTX Japan acquisition is estimated to be worth billions of yen, translating to tens of millions of US dollars. Local media outlet NHK NEWS reported that bitFlyer plans to integrate FTX Japan’s operations, including its customer accounts, data, and technology, into its platform. The move aims to provide continuity and stability for FTX Japan’s customers, who will be transitioned to bitFlyer’s platform, allowing them to continue trading without disruption.

FTX Trading filed for bankruptcy protection under Chapter 11 in the United States in November 2022, alongside approximately 130 other subsidiaries, due to a severe financial crisis. The company’s founder, Sam Bankman-Fried, faced accusations of misappropriating at least $8 billion from FTX customers, resulting in an $11 billion forfeiture order and a 25-year prison sentence, which he plans to appeal.

Ensuring Stability for FTX Japan Customers

In a bid to resolve its financial woes, FTX proposed a reorganization plan last month. This plan promises 98% of creditors 118% of their claims in cash within 60 days of court approval. However, the proposal has met with discontent from many creditors who prefer compensation in cryptocurrencies, which have appreciated significantly since their initial investments.

Despite its struggles, FTX has managed to restore assets valued between $14.5 billion and $16.3 billion. Additionally, it recently agreed to pay $885 million in taxes to the US government. FTX Japan, impacted by the parent company’s collapse, had temporarily halted asset withdrawals and ceased certain activities under regulatory orders but resumed withdrawals after compensating customers in February 2023.

The bitFlyer FTX Japan acquisition is expected to solidify its dominance in Japan’s cryptocurrency market while offering reassurance and stability to FTX Japan’s customer base.