Global: Cyprus Regulator Extends FTX Europe Suspension Until May 2025

The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of FTX Europe’s license until May 2025, marking the fourth extension since initially halting its operations on November 11, 2022. This suspension came as FTX filed for Chapter 11 bankruptcy in the United States, just eight months after FTX Europe launched as a European Union-regulated investment firm offering multi-asset derivatives trading.

The CySEC decision followed concerns over the “suitability of the members of the management body” and a need to protect client assets. Around this time, reports emerged of a significant hack draining nearly $600 million from FTX and FTX US-related wallets, amplifying the crisis.

FTX Europe, originally acquired from the Swiss-based startup Digital Assets AG for $323 million in 2021, was later sold back to its founders. In its restructuring efforts, FTX contested the purchase as an overvaluation, seeking partial recovery, which led to counter-litigation from the original owners. By February 2024, FTX settled by agreeing to resell FTX Europe to its founders for $32.7 million.

The FTX Europe website has since ceased trading operations, serving only as a portal for clients to view balances and initiate withdrawals. Any remaining client funds not withdrawn will be transferred into a “client segregated account” for a six-year holding period, according to the website’s FAQ section.