Japanese cryptocurrency exchange BitFlyer will acquire the Japanese arm of the collapsed FTX trading platform, according to local media reports.

BitFlyer Holdings is in the process of acquiring FTX Japan in a deal expected to be worth billions of yen, or tens of millions of dollars, the local news agency Nikkei reported on June 20.

Following the acquisition, FTX Japan's core business is reportedly planned to shift to crypto asset management or custody, targeting institutional investors.

FTX Japan is one of multiple firms affected by FTX’s collapse in November 2022. The exchange repeatedly argued that its customers’ assets were not part of FTX’s bankruptcy proceedings and eventually resumed withdrawals after repaying its customers in February 2023.

The FTX exchange collapsed months after it acquired Japan's crypto exchange, Liquid, and launched FTX Japan in early 2022.

This is a developing story, and further information will be added as it becomes available.