The crypto exchange FTX’s sudden collapse sent shockwaves through the crypto industry. Prior to its downfall, FTX was considered one of the top exchanges in the world, boasting millions of users and offering a wide range of products and services related to digital assets. Its subsidiary firms in different countries have also been affected by the collapse of the parent company. As the bankruptcy proceedings continue to resolve the challenges related to the company’s debts, the court handling the case has recently approved the sale of some of FTX’s assets, including FTX Japan.
Monex’s Acquisition of FTX Japan
As court proceedings continue to resolve the challenges based on the company’s debts, the court handling the bankruptcy proceedings has recently approved the sales of some of FTX’s assets, including FTX Japan. The CEO of Monex, Oki Matsumoto, disclosed the company’s interest in the acquisition during an interview with Bloomberg. Matsumoto stated that getting the FTX subsidiary firm would be great for Monex once the local market remains less competitive.
Matsumoto also revealed that Monex plans to position itself as a center from which other firms would depend for their exposure in the world of digital assets. Therefore, they are taking the initiative to reposition themselves early before the demand starts. He pointed out several potentials within the Japanese crypto market, noting that some firms could seek to dive into the crypto space by testing crypto assets investments, and that there are non-fungible tokens (NFTs) for companies to promote their brands.
Monex Group is an online securities brokerage company focusing on innovative investment and trading services, as well as offering financial and payment products and services to businesses. The group controls Coincheck, a prominent Japanese Bitcoin wallet and exchange service firm. Last year, the company declared its plan to list Coincheck on Nasdaq. Coincheck was pursuing its listing plan on the Nasdaq exchange in the second quarter of 2022, after its merger with a special purpose acquisition company (SPAC), Thunder Bridge Capital Partners IV, Inc. During his interview, Matsumoto mentioned that the listing plan for Coincheck remains unchanged even with the new move for the acquisition of FTX Japan.
FTX’s Assets Up for Sale
On December 15, 2022, the FTX legal representatives started to apply for the court’s permission to sell some of FTX’s assets. The lawyers cited some risks of value loss on the assets to facilitate the selling motion. Eventually, Judge John Dorsey approved the sales of four significant FTX assets as contained in Delaware Bankruptcy Court filings. These include the two regional subsidiaries of the firm, FTX Europe and FTX Japan, based in Europe and Japan, respectively, as well as the stock-trading platform Embed and the derivatives platform LedgerX.
The motion for the sales of the FTX assets also contained the auction dates for the assets if they have more than one bidder. Embed is slated to be auctioned on February 21, 2023, while LedgerX is slated for March 7, 2023. The auction date for FTX Europe and FTX Japan is March 21, 2023.
Besides Monex, other firms have indicated their interest in FTX assets. According to the court filing on January 10, up to 117 entities want to buy any of the assets. The crypto space is a rapidly evolving and dynamic industry, and the implications of the fall of a major player like FTX will continue to be felt for some time. The acquisition of its assets by firms like Monex is a sign of the industry’s resilience and adaptability, as well as the ongoing demand for digital assets and related services. As the crypto market continues to grow and mature, it will be interesting to see how companies like Monex, and the acquired FTX assets, will play a role in shaping the future of the industry.
Final Thoughts
The fall of a major player like FTX is a reminder of the volatility and risks present in the crypto industry. However, the interest and acquisition of its assets by firms like Monex highlights the ongoing demand for digital assets and related services. The crypto market is constantly evolving and it will be interesting to see how companies like Monex and the acquired FTX assets will shape its future. Despite the challenges and risks, the crypto industry remains a promising and exciting space for investment and innovation.
