Cyprus keeps FTX Europe license suspended until September

The story of the failed cryptocurrency exchange FTX is nearing its end, but certain remnants of the FTX organization are finding it difficult to keep going.

The Cyprus Securities and Exchange Commission (SEC) has prolonged the suspension of FTX Europe’s operating license, preventing the company from providing services until September 2024.

On April 16, Cyprus’ securities regulatory body made an announcement, requiring FTX Europe to take the necessary steps to adhere to the applicable laws under The Investment Services and Activities and Regulated Markets Law.

Cyprus keeps FTX Europe license suspended until September

In accordance with regulatory action, FTX Europe is restricted from offering investment services and engaging in business deals with any individual. Additionally, they are forbidden from soliciting new clients and promoting investment services, as stated in the communication.

Instead, FTX Europe and its clients were instructed by the Cyprus SEC, the regulatory body, to carry out all outstanding transactions at the request of the parties involved. Additionally, the company was directed to return all client funds and related financial assets to them.

A few weeks ago, a US federal judge handed down a 25-year sentence to Sam “SBF” Bankman-Fried, the former CEO of FTX, following his conviction on seven charges of fraud and conspiring to launder money on March 28.

Cyprus keeps FTX Europe license suspended until September

In November 2022, when FTX went under, FTX Europe, which was linked to FTX at the time, became part of the list of companies mentioned in FTX’s bankruptcy filing in the United States.

Prior to joining the FTX conglomerate, Digital Assets AG, founded by Patrick Gruhn and Robin Matzke in Switzerland, was merely recognized as a crypto startup. In 2021, they sold the company for an impressive $323 million to FTX, leading to its subsequent rebranding as FTX Europe.

In February 2024, after prolonged bankruptcy battles, FTX transferred ownership of its subsidiary, FTX Europe, back to its original founders, Gruhn and Matzke, for a sale price of $32.7 million.

After the agreement was reached, Matzke allegedly stated that FTX’s European growth was progressing smoothly until FTX encountered difficulties overseas in November 2022. He further expressed his satisfaction with the resolution.

“We are happy to support speedy payouts to EU clients,” Matzke said in February.

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2024-04-17 17:16