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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.&nbsp;
In a notice on Nov. 5, the Cyprus Securities and Exchange Commission (CySEC) <a data-ct-non-breakable="null" href="https://www.cysec.gov.cy/CMSPages/GetFile.aspx?guid=f18af64f-38a5-4fa6-93d7-ce2b133c4176" rel="null" target="null" text="null" title="null">announced</a> 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 <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ftx-eu-launches-withdrawal-website-to-pay-back-european-users" rel="null" target="null" text="null" title="null">return funds</a> to clients.&nbsp;<advertisement>
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 <img alt="Cyprus regulator extends FTX suspension to May 2025" src="https://s3.cointelegraph.com/uploads/2024-11/0192ffd7-d4bd-776e-9556-02dabea9361a" title="">
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 Cyprus SEC extends the suspension of FTX Europe. Source. Cyprus SEC
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 It was the fourth time the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cyprus-ftx-europe-suspended-september" rel="null" target="null" text="null" title="null">suspension had been extended</a> since CySEC ordered the operations to halt on Nov. 11, 2022, around the time FTX <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/chapter-11-bankruptcy" rel="null" target="null" text="null" title="null">declared bankruptcy</a> 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.&nbsp;
 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 <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/the-alameda-gap-and-crypto-liquidity-crisis-explained" rel="null" target="null" text="null" title="null">safeguard client assets</a>.&nbsp;
 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.
 Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ftx-estate-sues-kucoin-recover-assets" rel="null" target="null" text="null" title="null">FTX estate sues KuCoin to recover over $50M in assets</a>
 FTX Europe has since been sold back to the original owners.
 The Swiss startup Digital Assets AG, later named FTX Europe, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ftx-sam-bankman-fried-court-ftx-spent-400-million-on-the-acquisition-of-its-european-branch" rel="null" target="null" text="null" title="null">was acquired by FTX in a $323 million deal</a> in 2021.&nbsp;
 FTX’s restructuring team attempted to recover the funds spent on the acquisition, arguing the acquisition price was a&nbsp; “massive overpayment,” though this ended up in counter-litigation from the original owners.&nbsp;
 In February, Reuters <a data-ct-non-breakable="null" href="https://www.reuters.com/legal/litigation/ftx-reaches-33-million-settlement-over-failed-european-expansion-2024-02-23/" rel="nofollow noopener" target="_blank" text="null" title="https://www.reuters.com/legal/litigation/ftx-reaches-33-million-settlement-over-failed-european-expansion-2024-02-23/">reported</a> that FTX finally settled the dispute over its European division, agreeing to sell FTX Europe back to its founders for $32.7 million.&nbsp;
 The FTX Europe website no longer offers any trading — only a page for users to see their balances and request withdrawals.&nbsp;
 Clients who do not withdraw their funds will see them moved into a “client segregated account” for a period of six years, <a data-ct-non-breakable="null" href="https://ftxeurope.eu/help" rel="null" target="null" text="null" title="null">according</a> to the Frequently Asked Questions section.&nbsp;
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 <img alt="Cyprus regulator extends FTX suspension to May 2025" src="https://s3.cointelegraph.com/uploads/2024-11/0192ffd8-1fe2-7055-a7bf-d05f325a9bc6" title="">
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 FTX EU homepage. Source: FTX Europe
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 Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/hype-ai-agents-crypto-just-turned-into-reality/" rel="null" target="null" text="null" title="null">AI agents trading crypto is a hot narrative, but beware of rookie mistakes</a>
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Cyprus regulator extends FTX suspension to May 2025

Cointelegraph

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