bitFlyer Completes Acquisition of FTX Japan, Plans Rebrand and Expansion

Japanese cryptocurrency exchange bitFlyer has finalized its acquisition of FTX Japan, taking full ownership of the subsidiary as of July 26.

The newly acquired unit will be rebranded as “Custody New Company” by August 26, 2024. This new entity will focus on enhancing bitFlyer’s crypto custody services using the company’s advanced wallet technology and resources.

bitFlyer aims to leverage this acquisition to drive growth and address the rising demand for secure crypto asset management, especially among institutional investors.

The company plans to integrate advanced security measures and explore offerings related to crypto asset ETFs, pending regulatory developments in Japan.

The acquisition follows a U.S. court’s sale order on July 16, 2024, after FTX Japan entered Chapter 11 bankruptcy in November 2022. The Japanese arm had halted its exchange operations but continued to manage customer assets post-bankruptcy.

FTX Japan, launched in June 2022 through the acquisition of Liquid Group and its subsidiaries, faced challenges after its parent company’s collapse. This was compounded by allegations of financial misconduct by FTX’s founder, Sam Bankman-Fried.