CySEC Extends Suspension of FTX License Until March 31, 2024

The Cyprus Securities And Exchange Commission (CySEC) announced on Monday (October 23) that it has decided to suspend the authorization of FTX (EU) Ltd, the Cyprus Investment Firm (CIF) and the European unit of the failed crypto exchange FTX, until March 31, 2024. This is CySEC's fourth extension of the company's authorization.

According to the announcement, during the period of the authorization suspension, FTX (EU) Ltd is prohibited from offering any investment services or carrying out any investment activities. Additionally, it is not permitted to enter into any business transactions with any person or accept new clients. Advertising itself as a provider of investment services is also not allowed.

Crypto giant FTX filed for bankruptcy in November 2022 in the wake of claims that it misused and lost billions of dollars worth of customers' crypto deposits, and its founder Sam Bankman-Fried has been convicted and jailed​.

The Cyprus regulator stated in the announcement: "The Company, provided this is consistent with the wishes of its existing clients, may proceed with completing all its own transactions and those of its clients which are before it, in accordance with client instructions, and return all funds and financial instruments which are attributable to its clients."

In the most recent update regarding its repayment process, FTX has been approved to liquidate its crypto currency assets to repay customers in U.S. dollars. Additionally, Stanford University, based in California, has announced its decision to return all funds​ it received from the bankruptcy crypto exchange, totaling $5.5 million. These funds are expected to cover some of the losses of FTX investors.