The dramatic tale of the collapsed cryptocurrency exchange FTX is slowly coming to an end, but some remnants of the FTX empire are still struggling to stay afloat.
The Cyprus Securities and Exchange Commission (SEC) has recently extended the suspension of FTX Europe’s license, effectively preventing the firm from offering any services until September 2024. This decision was officially announced by Cyprus’ securities regulator on April 16, stating that FTX Europe must take the necessary actions to comply with the relevant laws.
As a result of this regulatory decision, FTX Europe is prohibited from providing investment services, engaging in business transactions with any individual, or accepting new clients. Additionally, the firm is not allowed to advertise its investment services.
However, the regulator has also mandated that FTX Europe must fulfill all its existing transactions and those of its clients upon request. Furthermore, the company is required to return all funds and financial instruments belonging to its clients.
This news comes shortly after former FTX CEO, Sam “SBF” Bankman-Fried, was sentenced to 25 years in prison on March 28. He was found guilty of seven counts of fraud and conspiracy to launder money. This sentencing marked a significant development in the aftermath of FTX’s collapse in November 2022.
Prior to its involvement with the FTX empire, FTX Europe was originally known as Digital Assets AG, a Swiss crypto startup founded by Patrick Gruhn and Robin Matzke. In 2021, Gruhn and Matzke sold the company to FTX for $323 million, leading to its rebranding as FTX Europe.
After a prolonged legal battle and bankruptcy disputes, FTX eventually sold its subsidiary, FTX Europe, back to its original founders in February 2024 for $32.7 million. Following the settlement, Matzke expressed satisfaction, stating that FTX’s European expansion was progressing well until the international failure of FTX in November 2022. He also emphasized that the settlement was a positive outcome.
Despite the ongoing struggles and setbacks, Gruhn and Matzke remain optimistic and committed to providing swift payouts to FTX’s European clients.