Cyprus’ financial regulator has extended the suspension of FTX’s European branch for another six months, just days before the two-year mark of the exchange’s collapse. On Nov. 5, the Cyprus Securities and Exchange Commission (CySEC) announced it would extend FTX EU’s suspension until May. 30, 2025. This extension means FTX EU can’t offer services, hire new clients, or advertise.
However, it can still process transactions and return funds to clients. This marks the fourth time CySEC has extended the suspension since it first halted FTX EU’s operations on Nov. 11, 2022, around the time FTX filed for bankruptcy in the U.S. At the time, the company had only been operating for eight months as a regulated investment firm in the EU, offering multi-asset derivatives trading.
CySEC extends FTX Europe suspension
When FTX filed for Chapter 11 bankruptcy in Delaware, the Cyprus Securities and Exchange Commission (CySEC) suspended FTX Europe’s license. CySEC raised concerns about the management team’s “suitability” and emphasized the need to protect client assets. Around this time, reports emerged of a massive hack draining up to $600 million in crypto from FTX and FTX US wallets.
Since then, the authorities have sold FTX Europe back to its original owners. This Swiss startup, initially called Digital Assets AG before rebranding as FTX Europe, was acquired by FTX in a $323 million deal in 2021. FTX’s restructuring team tried to reclaim the money spent on the acquisition, claiming they had paid way too much. This led to a legal dispute with the original owners.
In February, Reuters shared that FTX ultimately resolved the issue with its European division, agreeing to sell FTX Europe back to its founders for $32.7 million. The FTX Europe website no longer supports any trading. Instead, it now provides a page where users can check their balances and request withdrawals.
For clients who don’t withdraw their funds, FTX Europe will transfer these funds into a “client segregated account,” where they’ll be held for up to six years, according to their FAQ section.
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