Cyprus’s Securities and Exchange Commission (CySEC) has extended its suspension of FTX Europe’s operations for a fourth time, delaying any potential revival of the platform.
The latest extension, announced on November 5, pushes the suspension out by another six months, maintaining the ban until May 30, 2025.
Under this directive, FTX Europe remains barred from offering new services, taking on new clients, or engaging in promotional activities. However, the platform is still allowed to facilitate withdrawals for existing clients.
This extended suspension follows several previous ones since CySEC first imposed the ban on November 11, 2022, after FTX filed for bankruptcy in the U.S.
FTX Europe, which the U.S.-based FTX acquired for $323 million in 2021, initially offered multi-asset derivatives trading across the European Union. However, just months after launching as a regulated entity, CySEC intervened, citing concerns over management suitability and customer protection. Around this time, a hack drained approximately $600 million from FTX-related wallets in the U.S.
In early 2024, FTX resolved a legal dispute with the original owners of FTX Europe by selling the subsidiary back to them for $32.7 million, significantly less than the acquisition price. The FTX Europe website now functions solely as a portal for customers to view balances and request withdrawals. Clients who fail to retrieve their funds will see them transferred to a segregated account, where they’ll remain accessible for up to six years, according to the platform’s FAQ.
This development represents part of the broader, ongoing recovery efforts following the exchange’s insolvency. In August 2024, a creditor repayment plan for U.S. customers of FTX was approved. The $12.7 billion settlement plan received approval from the bankruptcy court after a lengthy 20-month battle. The approved reorganization plan aims to provide a 118% return to 98% of creditors with claims under $50,000, based on asset prices at the time of the exchange’s bankruptcy filing in November 2022.
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