Cyprus SEC extends FTX license suspension until May 2025, tightens restrictions on operations

Cyprus’ financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has extended the suspension of FTX (EU) Ltd’s CIF license until May 2025. The decision was made to allow the firm more time to comply with investment laws in Cyprus. FTX (EU) is prohibited from engaging in investment activities, advertising its services, and accepting new clients. However, it can continue transactions with the approval of its existing clients. The company is also required to reimburse its customers’ funds and assets. FTX (EU) has a troubled history, facing disputes and concerns about the safety of client funds and leadership competence. The collapse of its parent company in the US further worsened the situation. FTX (EU) had previously filed for bankruptcy, and CySEC has repeatedly extended the suspension of its operations. Despite FTX’s plans to refund customers’ funds and the liquidation process, the clients are still awaiting a resolution to their situation.