Japanese Cryptocurrency Exchange Giant Liquid Gets Bailed Out by FTX322

TOKYO, April 6 (Reuters) - FTX Trading said on Tuesday it will acquire all outstanding shares of Japanese cryptocurrency exchange Liquid Group, expanding its presence in Asia.

Liquid Group is headquartered in Japan and has operations in Singapore, Vietnam, and Thailand. The company has been facing financial difficulties recently, with its founder and chief executive, Mike Kayamori, admitting in February that it was not able to meet redemption requests from some customers.

FTX, one of the world's largest cryptocurrency exchanges, will provide Liquid Group with financial support and access to its trading platform and products.

"We are delighted to welcome Liquid to the FTX family," said Sam Bankman-Fried, founder and CEO of FTX. "Liquid is a well-respected brand with a significant presence in Asia. This acquisition will help us to accelerate our growth in the region and provide our users with access to a wider range of products and services."

Kayamori said that the deal with FTX will allow Liquid Group to continue to serve its customers and grow its business.

"We have been facing some challenges in recent months, but we are confident that FTX will provide us with the support we need to overcome these challenges and achieve our goals," he said.

The acquisition of Liquid Group by FTX is the latest in a series of moves by the company to expand its reach in Asia. In recent months, FTX has acquired the Japanese cryptocurrency exchange BitFlyer and the South Korean cryptocurrency exchange Bithumb.

The acquisition of Liquid Group is also a sign of the growing consolidation in the cryptocurrency exchange industry. As the industry matures, smaller exchanges are finding it increasingly difficult to compete with larger, more established players like FTX.

Details of the deal

The deal between FTX and Liquid Group is expected to close in the coming weeks. The terms of the deal were not disclosed, but FTX said that it will pay for Liquid Group using a combination of cash and FTX tokens.

As part of the deal, Liquid Group will retain its own brand and continue to operate independently. However, the company will have access to FTX's trading platform and products, and FTX will provide Liquid Group with financial support.

Implications of the deal

The acquisition of Liquid Group by FTX is a significant development for the cryptocurrency exchange industry, particularly in Asia. It will give FTX a significant presence in Japan, which is one of the world's largest markets for cryptocurrency trading.

The deal also highlights the growing consolidation in the cryptocurrency exchange industry. As the industry matures, smaller exchanges are finding it increasingly difficult to compete with larger, more established players like FTX.

The acquisition of Liquid Group is also a sign of the growing importance of Asia in the cryptocurrency market. Asia is home to some of the world's largest cryptocurrency exchanges, and the region is expected to continue to play a major role in the development of the cryptocurrency industry.

2024-11-13

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