FTX EU, the European division of the now-bankrupt cryptocurrency exchange, FTX, has launched a new website that allows European customers to request withdrawals of their funds trapped in the exchange.
As per a report from Finance Magnates, the Cyprus Securities and Exchange Commission (CySEC) granted approval for the new website domain https://ftxeurope.eu/. This move is coming after almost five months after the exchange’s collapse.
FTX EU, a solvent entity, is now paying out its customers on https://t.co/MEw8Oz8vTk.
Note: Almost none of FTX’s EU citizens are FTX EU users, because for some reason, FTX EU only onboarded customers registered from March 2022. pic.twitter.com/gu56Vysvlc
— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) March 30, 2023
FTX EU confirmed that the website would only serve the purpose of compensating affected customers and would not offer any other goods or services. It also noted that this website would only be accessible to clients of FTX EU LTD who wish to retrieve their fiat balances.
It is unclear how many users were affected by FTX EU’s accessibility in the Middle East and the European Economic Area. This is likely because FTX EU only became available in March 2022, and the exchange failed in November 2022. However, the number of affected users is expected to be low.
FTX EU obtained CySEC approval in March 2022, allowing it to offer regulated cryptocurrency products in Europe. After FTX’s collapse in November 2022, CySEC suspended the subsidiary’s license for violating the market regulations of the country. The company had appointed inappropriate individuals to its management board and failed to comply with the group’s standards for safeguarding clients’ assets.
Despite the suspension, FTX EU can still offer crypto derivatives products under its CIF license because it doesn’t allow the direct exchange of digital assets.
FTX EU was formerly known as K-DNA Financial Services Limited. The company is based in Switzerland and has a regional office in Cyprus. However, FTX acquired the company and renamed it after it had obtained full authorization as a Cyprus Investment Company (CIF). The license allowed it to offer regulated cryptocurrency products in Europe.
Meanwhile, FTX Japan, another subsidiary of the bankrupt crypto exchange, has already provided reparations to affected clients. The company witnessed a total withdrawal of approximately $50 million by late February 2023.
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