FTX confirms plans to restart its Japanese exchange News ▸ Japan ▸ FTX ▸ Bankruptcy
FTX confirms plans to restart its Japanese exchange
FTX wants the court to approve a Key Employee Incentive Plan (KEIP) for seven employees who are critical for its Japanese subsidiary.
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Updated: Apr. 27, 2023 at 4:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bankrupt crypto exchange FTX said it postponed the potential sale process of its Japanese subsidiary to explore its reopening.
The bankrupt firm’s management noted that while many investors had signified interest in acquiring FTX Japan, it halted the sales plan to maximize its value to continue operating efficiently and profitably.
FTX Japan possesses coveted licenses
According to an April 26 filing, FTX Japan is one of the few licensed operators in Japan.
The exchange possesses two of the most coveted license in the country 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.
The filing noted that these licenses generally take two or more years to obtain, which is one of the reasons it is attracting investors’ interest.
Besides that, the filing pointed out that FTX would be “unable to legally operate a spot and derivatives crypto exchange in Japan” without those licenses. As such, they are a critical part of whatever plans it has.
FTX Japan KEIP
Meanwhile, FTX wants the court to approve a Key Employee Incentive Plan (KEIP) for seven employees who are critical for its Japanese subsidiary.
“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.
According to the filing, these employees include its chief operating officer, chief product officer, chief financial officer, head of operations, chief compliance & risk officer, data scientist, and front-end engineer.
Under this plan, these employees can earn up to two payments under certain conditions, which include the firm maintaining its licenses and restarting operations or its eventual sale.
Meanwhile, each payment is capped at $450,000 for these employees.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.