FTX Europe to allow client withdrawals via new website
The Cypriot unit of failed cryptocurrency exchange FTX has launched a new website that it says would allow customers to withdraw deposits of fiat currency and crypto assets after months of suspension.
FTX Europe said its customers could withdraw assets through the website https://ftxeurope.eu/. According to a report in Finance Magnates, the Cyprus Securities and Exchange Commission (CySEC) has approved the new domain. However, there will be no services or products offered via this website.
A US bankruptcy court has given FTX’s liquidators the greenlight to kickstart bids to sell four functioning subsidiaries — including its Japanese and European units. The businesses include custody platform and broker-dealer Embed, crypto derivatives exchange and clearing house LedgerX, FTX Japan and FTX Europe, which have reportedly attracted as many as 117 expressions of interest.
Earlier in December, CySEC extended the suspension of FTX.com’s CIF license, which allowed the insolvent platform to operate throughout Europe, until March 31.
According to a regulatory circular, FTX EU cannot provide any services or enter into a business relationship with any person and take on any new clients as long as the authorisation suspension is in force.
In addition, the firm is not allowed to execute any orders from clients for buying financial instruments or provide any investment services in or outside of Cyprus. Furthermore, the suspended brand is not permitted to advertise itself as an investment services provider or has relating advertisements. They must also close all open positions in relation to clients’ contracts on their maturity date or upon their request, as well as return any funds and profits.
Earlier in November, the Cypriot chief regulator had asked FTX Europe to “suspend its operations and to proceed immediately with a number of actions for the protection of the investors”. The Cyprus branch, called FTX Europe, was among companies in FTX Group that filed for bankruptcy after the Sam Bankman-Fried-led exchange collapsed in dramatic fashion. The company, once valued at $32 billion, said its crypto trading arm, Alameda Research, and US business, FTX.us, as well as 130 additional sister companies are part of the bankruptcy proceedings.
CySEC granted its authorization to FTX in September, allowing the exchange to launch its cryptocurrency service across the entire European Economic Area.
