Crypto Exchange bitFlyer Reportedly Plans to Acquire FTX Japan
- The Japan-based crypto exchange is said to be buying out FTX Japans entire shares.
- bitFlyer is anticipated to rebrand the FTX subsidiary to gain customer confidence.
A key event is about to unfold as bitFlyer, a prominent Japanese crypto exchange, is slated to buy FTX Japan. Until today, details about the intention to acquire the local unit of the renowned but now insolvent FTX exchange remained undisclosed. Nonetheless, the arrangements for this transaction are nearing completion.
Those familiar with the situation say that bitFlyers parent firm has offered to buy out FTX Japan. There is a tight relationship between the transaction and the current processes in the US court that is overseeing FTXs bankruptcy.
BitFlyer is said to be buying out FTX Japans entire shares. In addition, local Japanese media outlet NHK reports that the cryptocurrency exchange will take over management of the company. The strategic importance of FTX Japans market position is reflected in the estimated purchase price, which is in the range of several billion yen.
Major Rebranding
FTX, which was previously a major participant in the cryptocurrency industry worldwide, sought US Chapter 11 bankruptcy protection in November 2022. Roughly 130 related businesses were listed in the bankruptcy case of the exchange that Sam Bankman-Fried (SBF) created. Due to this, it became the biggest bankruptcy in the cryptocurrency industrys history.
As a result, FTX Japan encountered limitations in its operations. The Japanese government ordered a temporary stop on the withdrawal of assets, among other things. Upon its demise in 2022, the exchange actively sought a purchaser for its Japanese affiliate.
In addition, bitFlyer is anticipated to rebrand the FTX subsidiary significantly. This is in order to gain customer confidence despite the continuing legal issues. Stakeholders are keeping a careful eye on how this transaction would affect the countrys crypto ecosystem as the proceedings wind down.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
