The Canadian cryptocurrency exchange Bitvo has officially terminated its proposed acquisition by FTX, marking a pivotal moment in the aftermath of one of the crypto industry’s most turbulent collapses. With regulatory scrutiny and prolonged approval processes ultimately stalling the deal, Bitvo has emerged unscathed—choosing to maintain its independence and continue serving Canadian users under its own regulatory framework.
This decision not only safeguards Bitvo’s operational integrity but also reinforces its position as a trusted, compliant platform in Canada’s evolving digital asset landscape.
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The End of a Proposed Takeover
On November 15, 2025, Bitvo announced that Pateno Payments, its shareholder, had formally terminated the acquisition agreement with FTX Canada and FTX Trading Ltd. The move comes after months of stalled progress, primarily due to extensive regulatory review requirements.
“Bitvo remains fully operational with no impact on services,” the company stated, emphasizing that it has no material exposure to FTX or any of its affiliated entities. All user functions—including deposits and withdrawals—continue without interruption.
Notably, Bitvo clarified that it was never involved in the bankruptcy proceedings affecting FTX and its subsidiaries. It also confirmed it never listed, traded, or held FTT (FTX Token) or any similar tokens tied to the failed exchange.
“Since inception, Bitvo has operated as an independent Canadian crypto asset trading platform,” the company emphasized. “We do not offer lending services and operate on a full reserve basis—meaning customer funds are never loaned out.”
This operational model aligns with Bitvo’s registration status as a restricted dealer under the Canadian Securities Administrators (CSA), reinforcing its commitment to compliance and security.
Why the Deal Fell Through
The acquisition was initially announced in June 2022 as part of FTX’s broader strategy to expand into international markets, including Canada. However, the rapid downfall of FTX—triggered by revelations of misuse of customer funds and risky trading activities at its sister firm Alameda Research—cast serious doubt on the viability of the transaction.
Despite ongoing efforts by both parties to meet closing conditions, including securing approval from key regulators like the Alberta Securities Commission (ASC), the process proved too complex and time-consuming.
Pamela Draper, CEO of Bitvo, shared insights with industry observers:
“We’re relieved the acquisition didn’t go through—it would have been devastating for our team and, more importantly, our customers.” She added that the months-long process focused heavily on fulfilling regulatory obligations, which ultimately could not be met within a viable timeframe.
The termination underscores how stringent oversight in Canada helped protect domestic crypto platforms from being drawn into FTX’s collapse—a fate that wasn’t avoided by all.
Contrasting Fortunes: Other FTX-Affected Platforms
While Bitvo successfully exited the deal, other companies acquired or backed by FTX faced significant disruptions:
- Liquid, a Japan-based exchange purchased by FTX in February 2022, suspended fiat and crypto withdrawals on its global platform following FTX’s bankruptcy filing.
- Voyager Digital, a U.S.-based crypto lender that filed for Chapter 11 protection in July 2022, had its asset sale to FTX US canceled after FTX itself filed for bankruptcy in November.
- LedgerX, operating as FTX US Derivatives, confirmed it remains operational and fully collateralized. CEO Zach Dexter emphasized that client funds are secure and the platform continues to offer swaps, futures, and options 24/7. Notably, LedgerX was not included in the bankruptcy filing.
These contrasting outcomes highlight the risks associated with affiliation to centralized crypto entities lacking transparency—and reinforce the value of regulatory clarity and financial independence.
Security and Custody: A Core Priority for Bitvo
Even during the uncertainty surrounding the acquisition, Bitvo maintained robust security protocols. Digital assets are held by independent third-party custodians: BitGo Inc. and BitGo Trust Company. Over 80% of assets are stored in cold storage, minimizing exposure to cyber threats.
This approach reflects a broader trend among compliant exchanges aiming to restore user confidence post-FTX. By prioritizing asset protection and avoiding high-risk financial products like yield-generating accounts or leveraged lending, Bitvo positions itself as a conservative yet trustworthy alternative.
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What This Means for Canadian Crypto Regulation
Bitvo’s ability to walk away from the deal also speaks volumes about Canada’s regulatory environment. Unlike jurisdictions with looser oversight, Canadian exchanges must meet strict reporting, capital reserve, and compliance standards.
The involvement of provincial regulators like the ASC ensured that due diligence was thorough—and ultimately gave Bitvo the leverage to exit when necessary. This case may serve as a benchmark for how regulatory frameworks can act as a safeguard during periods of market instability.
As Canada continues refining its approach to digital asset regulation—including potential licensing regimes for crypto businesses—exchanges like Bitvo are likely to play a central role in shaping best practices.
Frequently Asked Questions (FAQ)
Why did Bitvo cancel the FTX acquisition?
Bitvo canceled the acquisition because required regulatory approvals were not obtained within an acceptable timeframe. The company's shareholder, Pateno Payments, exercised its right to terminate under the agreement terms.
Is my money safe on Bitvo?
Yes. Bitvo operates on a full-reserve model and does not lend user funds. Assets are custodied by third parties like BitGo, with over 80% held in cold storage. The platform is registered as a restricted dealer under Canadian securities law.
Did Bitvo ever use FTX’s technology or systems?
No. According to public statements, Bitvo maintained full operational independence throughout the proposed acquisition period. There was no integration of systems or shared infrastructure with FTX.
Could the deal have been completed if FTX hadn’t collapsed?
Even without FTX’s collapse, regulatory hurdles in Canada likely would have delayed or blocked the deal. Provincial oversight bodies require rigorous vetting for ownership changes involving crypto platforms.
Does Bitvo offer trading in FTT or other exchange-specific tokens?
No. Bitvo has never listed or supported trading for FTT (FTX Token) or similar native exchange tokens linked to centralized platforms.
What’s next for Bitvo?
Bitvo plans to continue operating independently, focusing on compliance, security, and expanding its suite of services for Canadian retail and institutional investors.
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Final Thoughts
The collapse of FTX sent shockwaves across the global crypto ecosystem—but Bitvo’s story stands out as one of resilience and prudent governance. By maintaining independence, adhering to Canadian regulatory standards, and prioritizing user protection, Bitvo avoided entanglement in one of the sector’s biggest failures.
For users seeking reliable access to digital assets in Canada, platforms like Bitvo represent a growing class of regulated, transparent exchanges built for long-term sustainability—not speculative growth at any cost.
As the industry rebuilds trust, such distinctions will matter more than ever.