As a seasoned researcher with extensive experience in the crypto industry, I have closely followed the developments of bitFlyer and FTX Japan. The recent announcement of bitFlyer’s acquisition of FTX Japan marks an intriguing turn of events in the Japanese crypto market.


BitFlyer, the Japanese cryptocurrency exchange, has successfully finished acquiring FTX Japan, now making it a completely owned affiliate company.

On July 26, the agreement was sealed with bitFlyer gaining full control over FTX Japan’s remaining stock shares.

Crypto Custody Services

In a press announcement on Friday, bitFlyer revealed its intention to rename the recently acquired business as “Custody New Co.” by August 26, 2024. This fresh entity will be dedicated to growing bitFlyer’s crypto custodial services, utilizing the company’s current infrastructure and sophisticated wallet technology.

Through the purchase of every share and management control of FTX Japan, we plan to foster long-term expansion. By combining resources within the bitFlyer Group, we will create new offerings that will profit not just FTX Japan and its clientele but also all parties involved in the bitFlyer conglomerate.

Based on bitFlyer’s announcement, the newly established Custody Company is dedicated to addressing the increasing need amongst institutional investors for secure management of their cryptocurrency assets.

“BitFlyer’s approach is driven by the growing demand from institutional investors to invest in cryptocurrencies and the necessity of implementing top-notch security measures. By offering advanced crypto custody solutions and crypto asset Exchange-Traded Fund (ETF) services, we aim to bring substantial value to the bitFlyer Group.”

BitFlyer announced its readiness to tackle the growing need for enhanced security with sophisticated measures. Leveraging its proficiency in blockchain technology and security, the firm is set to introduce a state-of-the-art wallet as part of its upcoming crypto custodial services.

The details concerning the monetary aspects of the acquisition remain undisclosed. Nevertheless, they have announced plans to potentially provide services relating to cryptocurrency derivatives Exchange-Traded Funds (ETFs), pending further regulatory advancements in Japan, such as tax laws. These proposed services are intended for financial institutions and trust banks.

FTX Japan’s History

After the U.S. Court of Insolvency issued a sale order on July 16, 2024, the acquisition of FTX Japan’s assets will take place. FTX Japan entered Chapter 11 bankruptcy in November 2022, following the financial downturn of its parent company, FTX. Despite ceasing exchange operations after filing for bankruptcy, FTX Japan continued managing customers’ assets throughout this period.

In June 2022, FTX Japan came into existence through the procurement of fintech firm Liquid Group and its affiliated entities, such as Quoine Corporation – a pioneering crypto exchange in Japan.

Five months after its successful launch, FTX Japan encountered significant troubles when scandal hit its parent company. The company was accused of embezzlement and misusing billions of dollars from customer accounts. Consequentially, the founder of FTX, Sam Bankman-Fried, received a 25-year prison sentence and was mandated to repay a staggering $11 billion.

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2024-07-26 17:35