FTX plans to postpone the sale of its subsidiary in Japan, hoping to sell the entire group to increase the selling price.
2023-07-06 08:17
Odaily News: Cryptocurrency exchange FTX Trading plans to postpone the sale of its Japanese subsidiary, FTX Japan, and has communicated its intention to the Japanese Financial Services Agency through FTX Japan.
The suspension of the sale of FTX Japan by FTX is not intended to delay the sale process of the Japanese subsidiary. A senior executive of FTX Group stated that they want to increase the sale price by selling the entire group rather than selling individual subsidiaries in different regions.
In addition, the customer asset return process launched by FTX Japan in February is progressing smoothly. Currently, FTX Japan has returned 80% of the Japanese yen and other fiat currencies as well as virtual currencies to its customers. If the trading system used by FTX Japan's predecessor QUOINE operates smoothly, the Japanese Financial Services Agency may allow the company to resume operations before the end of the year (Nikkei News).
According to previous reports, in April of this year, FTX confirmed plans to restart its Japanese exchange, as stated in disclosure documents cited by FTX creditors. Despite investor interest in acquiring the company through competitive bidding, the sale plan was temporarily suspended in order to maximize its value. FTX Japan also proposed a core employee incentive plan called "License and Restart Award."
The disclosure documents show that "the potential sale process of FTX Japan has been postponed to allow the exchange to restart its business with regulatory approval, which will maximize the value of the transaction. As of the date of signing this agreement, a considerable number of investors have expressed interest in acquiring the company. At the same time, the debtors are considering potential reorganization, which requires the company to continue its operations in an efficient and profitable manner. The key to a successful restructuring or transaction is for the company to maintain its licenses as a provider of cryptocurrency exchange services and a primary financial instruments operator. Very few operators in Japan possess both licenses, making the company distinct from many competitors. Therefore, as part of the restructuring, these licenses are crucial for the company's ongoing operations, and investor interest in closing the transaction largely depends on the company maintaining its dual licensee status."
The suspension of the sale of FTX Japan by FTX is not intended to delay the sale process of the Japanese subsidiary. A senior executive of FTX Group stated that they want to increase the sale price by selling the entire group rather than selling individual subsidiaries in different regions.
In addition, the customer asset return process launched by FTX Japan in February is progressing smoothly. Currently, FTX Japan has returned 80% of the Japanese yen and other fiat currencies as well as virtual currencies to its customers. If the trading system used by FTX Japan's predecessor QUOINE operates smoothly, the Japanese Financial Services Agency may allow the company to resume operations before the end of the year (Nikkei News).
According to previous reports, in April of this year, FTX confirmed plans to restart its Japanese exchange, as stated in disclosure documents cited by FTX creditors. Despite investor interest in acquiring the company through competitive bidding, the sale plan was temporarily suspended in order to maximize its value. FTX Japan also proposed a core employee incentive plan called "License and Restart Award."
The disclosure documents show that "the potential sale process of FTX Japan has been postponed to allow the exchange to restart its business with regulatory approval, which will maximize the value of the transaction. As of the date of signing this agreement, a considerable number of investors have expressed interest in acquiring the company. At the same time, the debtors are considering potential reorganization, which requires the company to continue its operations in an efficient and profitable manner. The key to a successful restructuring or transaction is for the company to maintain its licenses as a provider of cryptocurrency exchange services and a primary financial instruments operator. Very few operators in Japan possess both licenses, making the company distinct from many competitors. Therefore, as part of the restructuring, these licenses are crucial for the company's ongoing operations, and investor interest in closing the transaction largely depends on the company maintaining its dual licensee status."
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