Cyprus regulator suspends FTX license

The Cypriot financial regulator (CySEC) intends to suspend the license of FTX’s European subsidiary. Bloomberg.

According to sources, authorities will publish the corresponding decision on Friday, November 11.

November 16, 2022 | 12:20Update:

On the CySEC website, information about the suspension of FTX EU Ltd’s license appeared.

\n\n\n\n

\n\n\n\n

In March, Sam Bankman-Fried’s created FTX Europe, having obtained a license from CySEC. At the time, the unit’s stated aim was to expand global presence by tapping the European market.

According to FTX, the Cypriot regulator’s license allowed it to “service the entire European Economic Area.”

On November 6, Binance CEO Changpeng Zhao stated that the company aimed to dispose of FTX’s utility token FTT. The assets, together with BUSD, totaled about $2.1 billion, marking the end of the company’s exit from its portfolio investment in the platform.

On November 8, Sam Bankman-Fried and Zhao announced a strategic partnership, but on November 10 Binance pulled out of acquiring FTX. The company said it would not be able to resolve the exchange’s problems.

According to Bloomberg and WSJ, the platform’s balance-sheet hole stood at $8 billion. However Reuters put a higher figure — $9.4 billion.

As a reminder, the Bahamas Securities Commission blocked assets of FTX Digital Markets and affiliated entities, and suspended the company’s license in the country.

The Japan Financial Services Agency ordered the local unit to suspend operations and switch to a close-only regime. close-only.

Read ForkLog’s bitcoin news in our Telegram — cryptocurrencies news, prices and analysis.