Monex Group, a major player in Japanese financial services, will buy Sam Bankman Fried's cryptocurrency exchange's FTX Japan branch.
The court approved the sale of FTX's subsidiaries in Europe and Japan as well as other companies to pay off its debts.
The Japanese division of Sam Bankman Fried's cryptocurrency exchange FTX, FTX Japan, will be acquired by Japanese financial services giant Monex Group. After last week's bankruptcy court approval, the action was taken to sell FTX businesses, including FTX Japan and FTX Europe.
According to report on January 16, Monex Group Inc. indicated interest in purchasing FTX Japan, FTX's subsidiary in Japan. Investors in the financial services company include Galaxy Digital, owned by Michael Novogratz, Oasis Management, Nomura Asset Management, Invesco, and The Vanguard Group.
Oki Matsumoto, CEO of Monex Group, stated in an interview that the business is considering purchasing FTX Japan. He asserted that a decrease in the number of cryptocurrency exchanges that compete with his Coincheck exchange is always "extremely positive." He omitted to say whether Monex is making a bid for the Japanese division of FTX, though.
The sale of FTX's European and Japanese subsidiaries as well as other businesses was authorised by the court in order to pay back its creditors. A court document states that 25 parties entered into private agreements with debtors out of the 41 parties who shown interest in FTX Japan.
Japan's cryptocurrency market could expand significantly with greater adoption as the country continues to relax its rules. Additionally, businesses may start investing in digital currency and using non-fungible tokens for marketing.
Monex has been diversifying its business operations and becoming global. Additionally, it controls Coincheck, one of the leading cryptocurrency exchanges in Japan, which is getting ready to float on the Nasdaq Exchange.
As of November 21, FTX Japan had about $139 million in cash and deposits. With the assistance of its associated exchange Liquid Japan, the exchange intends to restore customer cash in February.
After creating a new account, customers will be able to withdraw their cryptocurrency holdings from Liquid Japan. Withdrawals, however, might be delayed as a result of a security audit that includes controls, reconciliation, and reviews.