CySEC Further Extends Suspension of CIF Authorisation of FTX EU

The Cyprus Securities And Exchange Commission (CySEC) announced on Tuesday (April 16) the further extension of suspension of the Cyprus Investment Firm (CIF) authorisation of FTX (EU) Ltd, the European unit of the failed crypto giant FTX, until September 30, 2024. This marks the watchdog's fifth extension of FTX EU's authorisation suspension.

In October 2023, CySEC announced the decision to suspend the authorization until March 31, 2024​.

The regulator explained that it took this action for FTX EU to proceed with the necessary actions in order to comply with the relevant provisions of The Investment Services and Activities and Regulated Markets Law of 2017.

For as long as the suspension of the authorisation is in force, FTX EU is not permitted to provide/carry out investment services/activities; enter into any business transaction with any person and accept any new client; and advertise itself as a provider of investment services.

Meanwhile, the entity may complete all its own transactions and those of its clients which are before it, in accordance with client instructions; return all funds and financial instruments which are attributable to its clients.

At March end, Fazzaco reported that FTX founder Sam Bankman-Fried has been sentenced to 25 years in prison​ for stealing $8 billion from customers of the exchange.