The high-profile Chapter 11 case of the FTX Trading group involves its Japanese affiliates including FTX Japan, which operated a registered cryptocurrency exchange in Japan and has been ordered by the Financial Services Agency of Japan to suspend its business upon the filing for Chapter 11. Recently, a motion was made for entry of orders approving, among other things, the group to sell FTX Japan's business through so-called “363 sale”.

In this issue, we will address, from the perspective of Japanese law, rights that FTX Japan’s major creditors have against it and the impact of the government’s orders thereon, as well as the effects of the commencement of the Chapter 11 in Japan including the planned 363 sale of FTX Japan's business.