bitFlyer Acquires FTX Japan to Expand Crypto Custody Services

Japanese crypto exchange bitFlyer announced that it has completed its acquisition of FTX Japan, making it a fully owned subsidiary.

The deal, finalized on July 26, will have bitFlyer taking 100% ownership of FTX Japan’s outstanding shares.

Crypto Custody Services

In a Friday press release, bitFlyer detailed 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 business, leveraging the company’s existing operational resources and advanced wallet technology.

“By acquiring all shares and management rights of FTX Japan, we aim to achieve sustainable growth,” bitFlyer stated. “We will leverage synergies within the bitFlyer Group to develop new services, benefiting not only FTX Japan and its customers but all stakeholders of the bitFlyer Group.”

According to bitFlyer, the Custody New Company will focus on meeting the growing demand for secure crypto asset management among institutional investors.

“The increasing need for institutional investors to enter the crypto asset market and the need for professional security measures drive our strategy,” bitFlyer explained. “We believe that providing advanced crypto custody services and crypto asset ETF-related services will add significant value to the bitFlyer Group.”

bitFlyer also said that it is prepared to address this demand with advanced security measures, using its expertise in blockchain technology and security. The company has developed a highly secure wallet, which will be integral to its new crypto custody offerings.

The financial terms of the acquisition have not been disclosed. However, they stated that it is exploring the provision of services related to cryptocurrency derivatives ETFs while awaiting further legislative developments in Japan, including tax regulations. These offerings are aimed at meeting the needs of financial institutions and trust banks.

FTX Japan’s History

The acquisition follows a sale order issued by the U.S. Court of Insolvency on July 16, 2024. FTX Japan has been under Chapter 11 bankruptcy protection since November 2022, following the collapse of its parent company, FTX. The Japanese arm had stopped exchange operations after the bankruptcy filing but continued managing customer assets.

FTX Japan was launched in June 2022, facilitated by the acquisition of fintech company Liquid Group and its subsidiaries, including Quoine Corporation, one of Japan’s first crypto exchanges.

Despite its promising start, FTX Japan faced issues just five months later when its parent company collapsed amid allegations of embezzlement and misappropriation of billions of dollars in customer funds. FTX’s founder, Sam Bankman-Fried, was subsequently sentenced to 25 years in prison and ordered to reimburse $11 billion.

The post bitFlyer Acquires FTX Japan to Expand Crypto Custody Services appeared first on CryptoPotato.

HOT news

Related posts

Latest posts

Even earlier than the Xbox layoffs, there was ‘stress’ at Halo Studios

A minimum of 5 workers at Halo Studios have been fired as a part of company-wide layoffs at Microsoft on Wednesday, in response to...

Binance Pay Lights Up French Riviera: 80+ Retailers Now Take Stablecoins Immediately

Crypto adoption has reached the French Riviera, with greater than 80 retailers throughout the realm now accepting stablecoins and cryptocurrency funds, following a brand...

In style Design Firm Applies For IPO, Submitting Reveals $70M in BTC ETF Holdings

Aside from the substantial stock within the main cryptocurrency, the doc additionally reveals that the corporate bought $30M in USDC, which it intends to...

Blizzard is giving up on its Warcraft cellular sport amid layoffs

It's almost the top of the highway for Warcraft Rumble. Blizzard has introduced that it'll not be creating new content material for the free-to-play...

ChatGPT Predicts XRP, Pepe and Dogecoin Costs by Finish of 2025

OpenAI’s highly effective AI language mannequin, ChatGPT, predicts a robust conclusion for the crypto market as 2025 attracts to an in depth.Bitcoin’s ($BTC) 1.3%...

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!