The Cyprus Securities and Exchange Commission (CySEC) has extended its suspension of FTX’s European operations, prohibiting the troubled crypto exchange from offering services, taking on new clients, or promoting its platform in the region. This extension, announced on November 5, now stretches the suspension to May 30, 2025, as the exchange nears the two-year anniversary of its collapse.
CYPRUS EXTENDS FTX SUSPENSION UNTIL MAY 2025Cyprus just dropped the news that FTX Europe’s suspension is extended until May 2025—fourth time’s the charm, right?No trading or new peeps allowed, but you can still pull your coins out. It’s crazy to think this mess started back… pic.twitter.com/gEZ9QXiDTm
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 6, 2024
This marks the fourth extension of the suspension since CySEC initially halted FTX EU’s operations on November 11, 2022, one being in April.
Excerpt from CySEC’s decision vis-a-vis FTX Europe. Source: CySEC
The original suspension followed FTX’s filing for bankruptcy in the United States and arose from concerns over the “suitability of the members of the management body” at FTX Europe and the need to protect client assets.
Prime Trust Chapter 11 bankruptcy filing: https://t.co/esfnhDmGjK25,000 to 50,000 creditorslargest unsecured claims are customersestimated liabilities between $100 million to $500 millionestimated assets between $50 million to $100 million pic.twitter.com/DkFOwvn9Xz
— Pledditor (@Pledditor) August 15, 2023
CySEC’s actions at the time aligned with the news of a major security breach reportedly draining $600 million from FTX-linked wallets.
Cyprus SEC lengthens the suspension of FTX Europe. Source. Cyprus SEC
FTX Europe, which had been operating as an EU-regulated entity for only eight months before the suspension, had initially entered the European market through a $323 million acquisition of the Swiss startup Digital Assets AG in 2021. This acquisition allowed FTX to offer trading services in multi-asset derivatives under EU regulation. However, the hefty acquisition price later became a point of contention as FTX’s restructuring team sought to recoup costs, calling the amount a “massive overpayment.” This led to legal disputes with the original owners.
FTX EU Allowed to Only Engage in Fund Recovery Activities
A resolution came in February 2024, when FTX agreed to return FTX Europe to its original founders for $32.7 million, settling the ongoing dispute. As a result, the FTX Europe website has since been restricted, providing only a portal for clients to check their balances and submit withdrawal requests. Any unclaimed client funds will remain in a segregated account for up to six years, according to information available on the platform’s FAQ page.
FTX EU homepage. Source: FTX Europe Help Desk
CySEC’s recent decision permits FTX EU to continue processing client transactions and facilitate the return of funds, though it remains barred from offering any new services or marketing itself within the European Union.
The post Cyprus Regulator Blocks FTX Europe from Reopening Until 2025 appeared first on Coinfomania.