According to the CySEC regulatory circular, FTX EU will not be able to provide any services or enter into business relationships or attract new clients while the regulator's moratorium is in effect. FTX Europe is not permitted to carry out any requests for the purchase of financial instruments or provide investment services either in or outside Cyprus.
CySEC ordered the administration of FTX Europe to close all open positions on client contracts, as well as return deposits and profits due to clients.
FTX Europe, formerly known as the Swiss crypto startup Digital Assets, was sold in 2021 by the parent company FTX Group for $323 million. In February 2024, after lengthy disputes with the interim administration of the bankrupt FTX, the Swiss company was bought back by its founders for $32.7 million.
At FTX Group came
concluded that no other buyer would agree to acquire the bankrupt subsidiary of the FTX exchange and that the proposed compensation would be the best outcome for creditors of the trading platform that collapsed in 2022.
In early April, American lawyer John Deaton, who defends the rights of cryptocurrency companies, accused Republican Senator from Massachusetts Elizabeth Warren of covering up the activities of the FTX Group and aiding the former head of the bankrupt company, Sam Bankman-Fried. Fried).
Source: Bits
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