CySEC ordered FTX EU to stop all its operations on November 9, 2022.
FTX’s European arm, FTX EU, has just opened a new website where customers in Europe can claim their lost funds. The move, which is intended to provide relief to clients, comes four months after the large-scale crash of the FTX exchange in November.
FTX EU packages regulatory approval for launch
According to a report by Finance Magnates, the new website It was approved by the Cyprus Securities and Exchange Commission (CySEC). However, the website will focus solely on helping affected customers claim their FIAT balances before the crash. This means that the platform will not offer any other products or services as it did before. In a statement, FTX EU said in part:
“The website will only be used for all clients of FTX EU LTD to be able to claim their FIAT balances.”
The idea behind the new website is simple and it is expected to work without much hassle. This is because while the platform caters to users in the European Economic Area and the Middle East, it was only launched seven months before FTX crashed. Therefore, it is expected that the number of users submitting withdrawal requests will not be that large.
It is also worth mentioning that FTX continues to find various ways to ease the pain of its clients. Another of its subsidiaries, FTX Japan, similarly allowed the withdrawal of funds totaling around $50 million last month.
CySEC ordered FTX EU to halt all its operations on November 9, 2022. At that time, the regulator cited reasons bordering on client protection and asked the firm to proceed immediately with some actions. However, two days later, Coinspeaker reported that the global FTX Group and its 130 affiliates had finally filed for bankruptcy.
FTX Europe was headquartered in Switzerland in the short period that it operated. According to CySEC, the firm was only approved to perform investment services that may be in the form of derivatives or other financial instruments.
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Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from cryptocurrency, however, Mayowa’s imagined distractions include soccer or discussions of world politics.
