This means that the platform cannot offer new services or accept new customers, but users can still withdraw their funds.
The extension comes just days before the second anniversary of the crypto exchange’s collapse. Let’s discover more about this important news about FTX.
Cyprus Extends FTX Europe Suspension
The suspension of FTX Europe first happened on November 11th, 2022, shortly after the company declared bankruptcy in the U.S. At the time, FTX Europe had only been operating for eight months as a regulated investment firm in the European Union. CySEC decided to halt its operations due to concerns about the management team and the need to protect customers’ assets.
CYPRUS EXTENDS FTX SUSPENSION UNTIL MAY 2025
Cyprus just dropped the news that FTX Europe’s suspension is extended until May 2025—fourth time’s the charm, right?
No trading or new peeps allowed, but you can still pull your coins out. It’s crazy to think this mess started back… pic.twitter.com/gEZ9QXiDTm
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 6, 2024
Along with the bankruptcy filings, there were reports of a hack that drained up to $600 million in cryptocurrency from FTX and FTX US-linked wallets. Since then, FTX Europe has been sold back to its original owners. The Swiss startup Digital Assets AG, which became FTX Europe after FTX bought it for $323 million in 2021, agreed to sell it back for just $32.7 million in February 2024 after a lengthy dispute.
More About FTX Europe
Even though this company is no longer active in trading, customers can still see their account balances on the website and request withdrawals. Those who don’t withdraw their funds will have them moved into a “client-segregated account” for up to six years.
The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of https://t.co/bxoSABKoDV’s CIF license, which allowed the insolvent platform to operate throughout Europe, until May 30, 2025.https://t.co/ebMBQVJ1Pb#cysec #ftx #license #suspension #insolvent…
— FinanceFeeds (@FXFinanceFeeds) November 5, 2024
This ongoing suspension is a cautionary tale for the crypto world, where things can go from bad to worse in the blink of an eye. Although customers are allowed to withdraw their money, the future of the company remains unclear. For now, FTX Europe is in limbo, as the wheels of justice and regulation continue to turn slowly.
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