Australian regulator suspends license of local FTX unit

The Australian Securities and Investments Commission (ASIC) has suspended the financial-services licence issued to the local subsidiary of the FTX bitcoin exchange. This, according to a press release.

The restrictions remain in effect until 15 May 2023. However, ASIC allowed FTX Australia to provide “restricted financial services” until 19 December 2022.

The regulator added that John Muawad, Scott Langdon and Rahul Goyal of KordaMentha have been appointed voluntary administrators of FTX Australia and its “daughter” FTX Express Pty Ltd.

In March, the company of Sam Bankman-Fried announced the opening of a division in Australia and obtained a licence to provide financial services. The platform offered users a full range of exchange-traded and over-the-counter products, as well as derivatives.

On 11 November, the FTX Group filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. Bankman-Fried stepped down as CEO.

Court filings indicate that the operator of the bitcoin exchange has more than one million creditors. Bloomberg said that a return of funds to customers was unlikely.

Earlier, the Bahamas Securities Commission blocked the assets of FTX Digital Markets and affiliated entities, and suspended the company’s licence in the jurisdiction.

Cypriot authorities took similar steps against FTX Europe.

On 15 November, the Supreme Court of the Bahamas granted the regulator’s petition to appoint temporary liquidators of FTX Digital Markets.

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