Cyprus Regulator Pushes FTX Suspension to May 2025

FTX’s European arm continues to face trouble as Cyprus’ financial regulator extends its suspension. On November 5, 2024, the Cyprus Securities and Exchange Commission (CySEC) announced that the suspension would last until May 30, 2025. 

This decision comes just days before the two-year anniversary of FTX’s dramatic collapse. The company’s future in Europe remains uncertain, leaving clients and investors in limbo.

FTX Europe’s Suspension Stretched Again

CySEC first halted FTX Europe’s operations on November 11, 2022, after FTX filed for Chapter 11 bankruptcy in the United States. The suspension focused on concerns about management and the safety of client funds. 

Around the same time, reports of a hack began to surface, with as much as $600 million in crypto disappearing from FTX-linked wallets. Since then, CySEC has extended the suspension three times. 

Under the new order, FTX Europe cannot offer services, accept new clients, or advertise. However, the company can still complete transactions and return funds to clients.

A Troubled Acquisition and FTX Europe’s Next Steps

FTX Europe’s troubles didn’t end with the bankruptcy. In 2021, FTX purchased Digital Assets AG, a Swiss startup, for $323 million, renaming it FTX Europe. But the acquisition soon came under scrutiny. 

FTX’s restructuring team argued that the price paid was excessive. This led to legal battles with the original owners. In February 2024, FTX agreed to sell FTX Europe back to its founders for just $32.7 million, a fraction of the original price.

Today, FTX Europe’s website offers no trading services. It only allows users to check balances and request withdrawals. As the suspension continues into 2025, the future of FTX Europe remains unclear.