Cyprus SEC extends FTX Europe suspension to May 2025

The Cyprus Securities and Exchange Commission has extended the suspension of FTX Europe’s investment company license, banning the crypto exchange from providing services or accepting new customers.

In a statement published on November 5, Cypriot regulators announced that they had extended the suspension of FTX EU for another six months. This is the fourth time that the Cypriot agency has extended the suspension of FTX AB since the first suspension on November 11, 2022, which almost coincided with the collapse of FTX in the USA.

The firm is prohibited from conducting investment services or activities, engaging in new business transactions, accepting new clients, and promoting itself as an investment service until the suspension is lifted, currently set for May 30, 2025.

However, the agency allows FTX EU to complete its transactions and return funds and financial instruments to customers.

According to the notice, the Cyprus SEC extended the suspension of FTX AB to give the firm time to take the necessary steps to comply with investment and regulated market laws currently in force.

Due to the suspension, FTX Europe’s website does not offer any trading options; instead, it only allows users to log in to view their balance or request a withdrawal.

After FTX declared bankruptcy in November 2022, the Cyprus SEC suspended FTX Europe’s license due to “the suitability of the members of the governing body” and the need to protect customer assets.

FTX Europe was initially a Swiss startup called Digital Assets AG before changing its name when it was acquired by FTX for $323 million in 2021.

According to the Reuters report, FTX’s restructuring team attempted to recover some of the funds spent to acquire FTX Europe, stating that the price was a “huge overpayment”, but they resolved the dispute by selling FTX Europe back to its original founders. For $32.7 million, or just over 10% of the purchase price.

Shortly after being given the green light by the Cyprus SEC in 2022, FTX EU opened a regional center in Cyprus in addition to its headquarters in Switzerland.