FTX Europe License Suspension Extended Amid Ongoing Financial Struggles
Summary:
The Cyprus Securities and Exchange Commission has extended the license suspension for struggling company FTX Europe until September 2024. The decision follows former FTX CEO, Sam "SBF" Bankman-Fried's sentencing to a 25-year prison term for fraud. Initially recognized as Digital Assets AG, FTX Europe was sold back to its founders post lengthy bankruptcy proceedings. The co-founder of the now-FTX Europe, Robin Matzke, affirmed his commitment to expedite payments to EU clients.
The resolution of the collapsed FTX cryptocurrency exchange seems to be gradually falling into place, but certain fragments of the once-thriving FTX empire are finding it difficult to sustain their operations. The license suspension of FTX Europe has been extended by the Cyprus Securities and Exchange Commission, preventing the company from offering services until September 2024. The regulator's formal announcement on April 16 required FTX Europe to take necessary steps to achieve compliance with the Investment Services and Activities and Regulated Markets Law provisions.
The CySEC's resolution, as stated in the announcement, also bars FTX Europe from delivering investment services or conducting any type of business dealings. It is also restricted from gaining new clientèle and promoting investment services. Of importance to note too is that FTX Europe must complete all its transactions and those of their clients as demanded, and make refunds of all monies and financial instruments owing to clients. This regulator's ruling follows fast on the heels of the sentencing of ex-FTX CEO Sam "SBF" Bankman-Fried to a 25-year prison term by a U.S. federal judge for fraud and conspiracy to launder money.
Post its collapse in November 2022, FTX Europe, previously affiliated with FTX, was listed among the companies in FTX's Chapter 11 filing in the U.S. Originally known as Digital Assets AG, a Swiss blockchain-based startup co-founded by Patrick Gruhn and Robin Matzke, FTX Europe became part of FTX after a $323 million sale in 2021. Bankruptcy proceedings ended in FTX divesting FTX Europe back to its initial owners, Gruhn and Matzke, for $32.7 million.
Following the buy-back, Matzke apparently stated that while FTX's European venture had been successful, it nose-dived when FTX tanked globally in 2022, although he deemed the resolution to be satisfactory. Matzke expressed pleasure in February at enabling quick payments for EU clients.
Published At
4/17/2024 5:09:59 PM
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