As a researcher with a background in finance and cryptocurrencies, I find this news intriguing, given the recent bankruptcy proceedings of FTX and BitFlyer’s intentions to acquire its Japanese arm. The deal is significant, as it reflects the ongoing consolidation within the crypto exchange industry and the growing interest from traditional financial institutions.
As a financial analyst, I can share that one of Japan’s leading cryptocurrency exchanges is considering purchasing the local subsidiary of the insolvent crypto trading platform, FTX.
As a researcher uncovering information, I came across a report from Nikkei, a local media outlet, revealing that BitFlyer Holdings, the overarching organization behind the crypto exchange BitFlyer, is close to acquiring FTX Japan. The details of this deal have been kept under wraps up until now, but it appears we’re nearing its completion.
BitFlyer Holdings to Buy FTX Japan
As a crypto investor, I’ve heard rumors that the upcoming acquisition of FTX Japan is supposedly valued at an enormous sum in Japanese yen. This equates to a substantial amount in US dollars, showcasing the exchange’s significant worth in the market. It’s essential to note that this deal is closely interconnected with FTX’s ongoing bankruptcy proceedings in the United States.
BitFlyer is set to acquire all the shares of FTX Japan, gaining ownership and management control over its business. Once the transaction is completed, it’s expected that FTX Japan will shift its focus towards crypto asset management or custodial services, catering primarily to institutional investors.
In June 2022, FTX initiated its Japanese division through the acquisition of fintech firm Liquid Group and all of its subsidiaries. Notable among these was Quoine Corporation, an early crypto exchange in Japan. Over time, FTX seamlessly merged its offerings with those of Quoine Corporation, effectively transforming it into FTX’s Japanese branch.
FTX Group Still in Bankruptcy
As a researcher looking into the events surrounding FTX’s bankruptcy in November 2022, I can share that Japanese regulatory authorities took decisive action by ordering FTX Japan to cease withdrawals and suspending its operating license. Amidst FTX’s financial turmoil, FTX Japan maintained that their customer assets were exempt from the exchange’s bankruptcy proceedings, with a promise to return clients’ funds in the ensuing months.
Following a lengthy pause, the Japanese team initiated withdrawals once more towards the end of February. It was disclosed that transactions for users would be handled via the local cryptocurrency exchange, Liquid.
Prior to the Japanese branch of FTX halting its withdrawals, U.S. Judge John Dorsey gave his approval for FTX’s proposal to sell four assets: Embed (stock-clearing platform), LedgerX (derivatives arm), FTX Europe, and FTX Japan. At that point, there were 41 potential buyers from around the world who had shown interest in acquiring the Japanese unit. The acquisition process has been kept under wraps, but it appears that BitFlyer will be the successful bidder.
Currently, FTX’s creditors have expressed opposition to the exchange’s proposed restructuring scheme. They argue that it falls short in addressing specific conditions set by the Bankruptcy Code, such as clarifying property rights and ensuring a uniform approach to debtor liquidation.
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2024-06-21 07:18