In a significant development within the cryptocurrency industry, the Japanese subsidiary of FTX Trading has been acquired by domestic competitor bitFlyer. The acquisition follows FTX Trading’s Chapter 11 bankruptcy filing in the United States last year.
FTX Trading, a prominent global cryptocurrency exchange, filed for Chapter 11 bankruptcy protection in a U.S. court in November last year, affecting approximately 130 group companies. This bankruptcy, considered one of the largest in the industry, led to FTX Japan facing a temporary suspension of asset withdrawals and partial operational shutdowns by order of Japanese financial authorities.
Amid the fallout, FTX Japan was actively seeking a buyer. According to reliable sources, bitFlyer’s parent company has emerged as the frontrunner in acquiring FTX Japan. The acquisition process, currently underway, is expected to culminate with bitFlyer purchasing all shares of the Japanese subsidiary. The deal is estimated to be valued at several billion yen.
Growing Cryptocurrency Market in Japan
The acquisition comes at a time when the cryptocurrency market in Japan is experiencing significant growth. As per the Japan Cryptocurrency Exchange Association, the number of cryptocurrency accounts in the country surpassed 10 million by the end of April this year, a figure that has more than tripled in the past five years. Despite this growth, issues related to the safety and protection of users continue to be a concern.
The successful acquisition of FTX Japan by bitFlyer marks a pivotal moment in the Japanese cryptocurrency landscape. As the industry continues to expand, the focus on user safety and regulatory compliance will remain critical. BitFlyer’s acquisition is expected to strengthen its market position and provide a stable platform for former FTX Japan users.