Japanese exchange BitFlyer acquires FTX Japan

FTX Japan, a Japanese subsidiary of the collapsed FTX exchange, is preparing to return with a new owner after paying off its clients in 2023.

Japanese cryptocurrency exchange BitFlyer will acquire the Japanese arm of collapsed FTX exchange, according to local media reports.

Local news agency Nikkei reported on June 20 that BitFlyer Holdings is in the process of acquiring FTX Japan in a deal expected to be worth billions of yen, or tens of millions of dollars.

Following the acquisition, FTX Japan's core business will reportedly shift to crypto asset management or custody, targeting institutional investors.

FTX Japan is one of several companies affected by FTX's collapse in November 2022. The exchange has repeatedly argued that its clients' assets were not part of FTX's bankruptcy proceedings, as it eventually resumed withdrawals after paying off its clients in February 2023.

The FTX exchange collapsed months after it acquired Japanese cryptocurrency exchange, Liquid, and launched FTX Japan in early 2022.