FTX Japan puts sale plan on hold as it mulls a reboot

abdelaziz Fathi

The Japanese subsidiary of bankrupt exchange FTX announced that it has postponed the potential sale process of its business as it explores relaunching its operations.

The exchange’s management stated that, despite significant interest from investors in acquiring FTX Japan, it has decided to halt the sales plan to maximize its valuation and ensure that it can operate efficiently and profitably in the future.

Before the plan works out, the collapsed platform hopes to maintain its dual licensing as a Crypto-Asset Exchange Service Provider and Type I Financial Instruments Business Operator under the Payment Services Act and the Financial Instruments and Exchange Act of Japan.

These licenses are critical to its operations, FTX said, as they enable the company to operate a legitimate spot and derivatives crypto exchange in Japan. It usually takes at least two years to obtain these highly coveted approvals, and only a few operators in Japan have both, giving FTX an edge over many of its rivals.

Meanwhile, FTX is seeking court approval for a Key Employee Incentive Plan (KEIP) that would benefit staffers who were leading its Japanese subsidiary’s operations. The KEIP aims to motivate and retain key personnel who are essential in maximizing the value of the subsidiary, and it will only be activated if the sale of the subsidiary falls through and FTX Japan resumes operations.

The plan proposes up to two payments of around $950K, with the majority of the amount going to the subsidiary’s chief operating officer, chief product officer, chief financial officer, head of operations, chief compliance & risk officer, data scientist, and front-end engineer.

“The KEIP Participants have the institutional knowledge, specialized skillsets, and critical relationships with regulators and Company employees that are necessary to maximize the going concern value of the Company or to restart the Debtors’ exchange,” the statement reads.

The development comes barely two months after FTX Japan started allowing customers to access their assets. In February, around 7,026 users moved 6.6 billion yen from their exchange accounts to Liquid, a relatively quick reboot compared to customers in other countries where they are a long way from getting access to their fund.

FTX Japan laid out a timeline for the restoration of customer funds and resume asset withdrawals. The exchange developed a recovery system that enables affected users to retrieve their assets via Liquid Japan, which was the first exchange to be officially licensed by the Japan Financial Services Agency (JFSA).

Read this next

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.

blockdag

Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.

Inside View

ISDA says US Basel III “endgame” to heighten market risk capital

ISDA further explained that, by requiring banks to hold additional capital that is misaligned with levels of risk, the proposal would significantly reduce capital market access for US end users and businesses, restrict the ability of businesses to hedge exposures to changes in commodity prices, and increase the cost of everyday consumer goods, including food and gasoline.

<