Cyprus’ financial regulator extended its suspension of FTX’s European arm by another six months, just days before the crypto exchange crosses the second anniversary of its collapse.
In a notice on Nov. 5, the Cyprus Securities and Exchange Commission (CySEC) announced the suspension had been extended until May 30, 2025, prohibiting FTX EU from offering services, accepting any new clients or advertising.
It still allows the firm to complete transactions and return funds to clients.
It was the fourth time the suspension had been extended since CySEC ordered the operations to halt on Nov. 11, 2022, around the time FTX declared bankruptcy in the United States.
At the time, the company had only operated for eight months as a European Union-regulated investment firm offering trading in multi-asset derivatives.
As FTX declared Chapter 11 bankruptcy in Delaware, CySEC suspended FTX Europe’s license, citing the “suitability of the members of the management body” and the need to safeguard client assets.
It was also around this time that reports were swirling of a hack that had emptied as much as $600 million in crypto from FTX and FTX US-linked wallets.
FTX Europe has since been sold back to the original owners.
The Swiss startup Digital Assets AG, later named FTX Europe, was acquired by FTX in a $323 million deal in 2021.
FTX’s restructuring team attempted to recover the funds spent on the acquisition, arguing the acquisition price was a “massive overpayment,” though this ended up in counter-litigation from the original owners.
In February, Reuters reported that FTX finally settled the dispute over its European division, agreeing to sell FTX Europe back to its founders for $32.7 million.
The FTX Europe website no longer offers any trading — only a page for users to see their balances and request withdrawals.
Clients who do not withdraw their funds will see them moved into a “client segregated account” for a period of six years, according to the Frequently Asked Questions section.
