- The Securities and Exchange Commission of Cyprus has postponed the suspension of Europe’s FTX.
- After getting a stamp of approval by the Commission of Cyprus, two years ago, a local headquarters of FTX EU was opened in Cyprus.
- The harsh effect of this suspension can be seen on the website of FTX EU.
On November 5, a notice was published in which it was mentioned that the regulators of Cyprus have postponed the suspension of FTX Europe for six months. A continued fourth extension has been made by the regulators of Cyprus.
The decision of the very first extension was made on November 11, 2022, at the time when Sam-Bankmanfried’s FTX went bankrupt in the United States. Now, the suspension is shifted and set to May 30, 2025. Up to the time the suspension is removed, the company is not allowed to perform investment services as well as activities.
Apart from this, the company can not take part in new business transactions, accept new customers, and also can not promote itself as an investment service.
However, the regulators have also not given the authority to carry out the transaction. Also, it can not return the capital as well as financial instruments to the customers.
Why was the suspension postponed?
If we dig into the notice, we get to know that the Securities and Exchange Commission of Cyprus has postponed the suspension of Europe’s FTX and has given time to the company to continue complying with the steps needed to adhere to the investments along with regulation of the market that are in place in the current scenario.
The harsh effect of this suspension can be seen on the website of FTX EU. And, due to this, it is not offering any trading options. Rather than that, customers can just log in and have a look over their current balance, and request a withdrawal.
Two years ago, in November 2023, Sam Bankman Fried-led company, FTX filed for bankruptcy, as a result, the Securities and Exchange Commission of Cyprus suspended the license of FTX Europe. The reason for this quoted by the Commission was the sustainability of the members who were in the management body.
In the beginning, Europe’s FTX was a Swiss startup company under the name of Digital Assets AG. After some time, in 2021, the company was acquired by FTX by giving about 323 million dollars for the acquisition.
Selling back of the firm
Reuters, a prestigious media outlet has noted that the restructuring team of the bankrupt company was in the mood to take back a portion of the capital spent while having the authority of FTX Europe.
The restructuring team gave the reason for the price being overpaid. However, in the end, the quarrel between the parties was sorted out after the FTX Europe was sold out to the original owners. An amount of about $32.7 million was given at this time which accounted for 10% higher as compared to the acquisition price.
After getting a stamp of approval by the Commission of Cyprus, two years ago, a local headquarters of FTX EU was opened in Cyprus.
