Cyprus extends FTX suspension until May 2025

The Cyprus Securities and Exchange Commission (CySEC) has extended the suspension of FTX’s (CRYPTO:FTT) European arm, FTX EU, for another six months, setting the new date to May 30, 2025.

This marks the fourth extension since CySEC initially suspended FTX EU operations on November 11, 2022, shortly after FTX’s bankruptcy declaration in the U.S.

In its November 5 notice, CySEC confirmed that the suspension prevents FTX EU from offering services, accepting new clients, or engaging in advertising.

However, it permits the firm to facilitate transactions and allow clients to withdraw their funds.

CySEC’s initial suspension followed concerns about the “suitability of the members of the management body” and the importance of safeguarding client assets.

FTX EU had only been operational for eight months under its European license when FTX filed for Chapter 11 bankruptcy in Delaware.

Around this time, reports surfaced of a significant hack involving $600 million drained from wallets associated with FTX and FTX US.

FTX EU was originally acquired by FTX from Swiss startup Digital Assets AG in a $323 million deal in 2021.

Following FTX’s collapse, the restructuring team aimed to recover the acquisition funds, claiming the purchase price was an “overpayment,” which led to counter-litigation by the original owners.

In February, Reuters reported that FTX settled the matter by selling FTX EU back to its founders for $32.7 million.

Currently, the FTX Europe website no longer supports trading activities, only providing users with a portal to check balances and request fund withdrawals.

According to the FAQs, funds left unwithdrawn will remain in a “client segregated account” for up to six years.

At the time of reporting, the FTX price was $1.70.