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13 July, 2024
 
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Cyprus to extend FTX EU license suspension

CySEC says it is working closely with US authorities as island's watchdog seeks to protect investors

Source: Reuters

Cyprus’ securities regulator plans to extend the suspension of the license of FTX EU and will meet to discuss the matter next week, a spokesperson said on Tuesday.

“CySEC is taking all the necessary actions to safeguard the interests of investors in FTX EU and is working closely with the administrator in the US under Chapter 11,” the person said in a written comment to Reuters.

FTX had announced in September that it had received approval to operate FTX EU as a Cyprus investment firm

The Cypriot regulator suspended the license of FTX EU on November 11, just before the cryptocurrency exchange imploded, seeking bankruptcy protection in the United States.

FTX EU had then been given a month to rectify what CySEC suspected were violations of conditions to safeguard client assets and on the suitability of management.

Its former CEO Sam Bankman-Fried was charged by the US Securities and Exchange Commission on Tuesday with defrauding investors, following his arrest by Bahamian authorities late on Monday.

FTX had announced in September that it had received approval to operate FTX EU as a Cyprus investment firm.

CySEC has said it was not licensed to engage in the direct trading of crypto assets.

TAGS
Cyprus  |  FTX EU  |  crypto  |  scandal  |  CySEC

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