Suspension of FTX Europe License Extended to September by Cyprus
The story of the collapsed cryptocurrency exchange FTX is slowly coming to an end, but some parts of the former FTX empire are still facing challenges in continuing their operations. The Cyprus Securities and Exchange Commission (SEC) has decided to extend the suspension of FTX Europe’s license, which means that the firm cannot offer its services until September 2024. This news was officially announced by Cyprus’ securities regulator on April 16. The SEC has stated that FTX Europe must take the necessary steps to comply with the relevant provisions of the law governing investment services and regulated markets.
As a result of this regulatory decision, FTX Europe is prohibited from providing investment services, engaging in any business transactions with individuals, accepting new clients, and advertising its investment services. The regulator has also mandated that FTX Europe must fulfill all of its transactions and those of its clients upon request. The company is required to return all funds and financial instruments that belong to its clients.
This announcement comes just a few weeks after former FTX CEO Sam “SBF” Bankman-Fried was sentenced to 25 years in prison on charges of fraud and conspiracy to launder money. The collapse of FTX in November 2022 led to FTX Europe being included in FTX’s Chapter 11 filing in the United States. Before becoming part of the FTX empire, FTX Europe was originally known as Digital Assets AG, a Swiss cryptocurrency startup co-founded by Patrick Gruhn and Robin Matzke. In 2021, Gruhn and Matzke sold the company to FTX for $323 million, and it was subsequently rebranded as FTX Europe.
After a series of bankruptcy disputes, FTX sold its subsidiary FTX Europe back to its original founders, Gruhn and Matzke, in February 2024 for $32.7 million. Matzke has stated that FTX’s European expansion was progressing well until the company faced international failure in November 2022. He also expressed satisfaction with the settlement, stating that it would enable speedy payouts to clients in the European Union.
11 thoughts on “Suspension of FTX Europe License Extended to September by Cyprus”
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On a positive note, I’m glad to see that FTX Europe is committed to fulfilling all transactions and returning funds to its clients. Honesty and integrity should always be at the forefront. 💯💰
FTX Europe’s problems just keep piling up. It seems like they can’t catch a break. 😔 I hope they can find a way to navigate through these challenges. 🤞
The sale of FTX Europe back to its original founders, Gruhn and Matzke, shows their commitment and belief in the potential of the company. I hope this settlement paves the way for a brighter future for FTX Europe and its clients.
FTX Europe’s former CEO’s actions have had far-reaching consequences for the company. Their reputation has been tarnished, and it’s difficult to see a way forward.
It’s unfortunate that FTX Europe can’t offer its services, accept new clients, or advertise during this period. But it’s crucial to prioritize adherence to the necessary regulations for a stable and trustworthy industry.
It’s disappointing to see FTX Europe in this situation. They were once a promising company, but now they’re facing so many obstacles.
FTX Europe should have been more careful in their operations. Their failure to comply with regulations reflects poorly on the entire cryptocurrency industry.
Kudos to Cyprus’ securities regulator for holding FTX Europe accountable and demanding compliance. 🤝🔐 Such actions reinforce investor protection and contribute to a more secure financial environment. 💼🌍
FTX Europe’s former CEO, Sam Bankman-Fried, deserved his prison sentence! 😡 It’s clear that there were serious problems within the company. 💰⚖️
The extension of the license suspension until September 2024 by the Cyprus Securities and Exchange Commission is definitely a setback. However, I believe FTX Europe will use this time to ensure compliance with the investment services and regulated markets laws.
It’s unfortunate that FTX Europe is facing these regulatory hurdles. 📛 It’s a setback for the company and the cryptocurrency industry as a whole. 💔