Key Takeaways:
- Extended Suspension: Cyprus’ CySEC has prolonged the suspension of FTX Europe’s license until May 2025, marking the fourth extension since the original halt in November 2022.
- Limited Operations: FTX Europe is restricted to processing customer withdrawals, with a complete ban on new client sign-ups, trading, or marketing activities.
- Ongoing Compliance Issues: CySEC’s repeated extensions reflect concerns over FTX Europe’s regulatory compliance and asset management, following FTX’s bankruptcy and high-profile security breaches.
Cyprus’ Securities and Exchange Commission (CySEC) has extended the suspension of FTX Europe’s license until May 30, 2025, marking the fourth extension since FTX’s collapse.
The extension, announced on November 5, 2023, prohibits FTX Europe from offering trading services, taking on new clients, or advertising, but allows existing clients to withdraw funds.
📰UPDATE: CYPRUS FINANCIAL REGULATOR EXTENDS SUSPENSION OF FTX EUROPE FOR ANOTHER SIX MONTHS, CITING ONGOING INVESTIGATIONS
— BSCN Headlines (@BSCNheadlines) November 6, 2024
Initially suspended in November 2022 after FTX filed for bankruptcy in the U.S., CySEC’s actions aimed to protect client assets amid concerns over FTX’s management and compliance.
FTX Europe, acquired by FTX in 2021 for $323 million, operated briefly in the EU before facing regulatory setbacks.
Following disputes over the acquisition’s value, FTX sold the company back to its original owners in early 2023 for $32.7 million.
Currently, the FTX Europe website is limited to balance viewing and withdrawals.
Unwithdrawn client funds will be placed in segregated accounts for up to six years, ensuring clients’ access to assets despite the platform’s suspension.
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