Japanese crypto giant bitFlyer has successfully acquired FTX Japan, making it a fully owned subsidiary. BitFlyer, headquartered in Tokyo, has purchased 100% of the outstanding shares of FTX Japan.

In a recent announcement, bitFlyer outlined plans to integrate FTX Japan into its operations, rebranding it as “Custody New Company” by August 26. This new entity will focus on expanding bitFlyer’s crypto custody business, utilizing the company’s existing operational resources and wallet technology. Financial details of the acquisition were not disclosed.

The new custodian will also explore services related to physical crypto exchange-traded funds, pending the establishment of a legal framework including tax regulations in Japan.

“By acquiring all shares and management rights of FTX Japan, we aim to achieve sustainable growth, leveraging synergies within the bitFlyer Group to develop new services, benefiting not only FTX Japan and its customers but all stakeholders of the bitFlyer Group.”

Previously, FTX Japan was fully owned by FTX Japan Holdings and has been under Chapter 11 bankruptcy protection since November 2022. The Japanese arm ceased exchange operations following the bankruptcy filing but continued to manage customer assets.

FTX collapsed in late 2022 amid allegations of embezzlement and misappropriation of billions of dollars in customer funds involving its owners and affiliated hedge fund, Alameda Research. Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison and ordered to reimburse $11 billion.

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