As the bankruptcy proceedings of FTX Group continue in USA, FTX clients around the world are hoping for a positive outcome as regards to the recovery of their funds.
FTX was authorized by CySEC on September 2022 to extend the provision of its services within Europe via the company FTX EU Ltd registered in Cyprus. CySEC however, has suspended the license of FTX EU Ltd hours after FTX Group filed the application for bankruptcy proceedings on 11/11/2022.
The suspension was extended until 31/3/2023. CySEC have based their decision to suspend the license of FTX EU Ltd on the suspicions of alleged violations of:
Section 22(1) of the Investment Services and Activities and Regulated Markets Law of 2017 (the ‘Law’) as the Company does not appear to comply at all times with the authorisation conditions: – in section 9(2)(a) of the Law, in relation to the suitability of the members of the management body, and
Section 17(9) of the Law, as specified in paragraph 4(1)(f) of the CySEC’s Directive DI87-01 for the Safeguarding of Client Assets, Product Governance Obligations and Inducements, in relation to the organisational requirements for safeguarding the clients’ assets.
Based on CySEC’s decision FTX EU Ltd is not permitted to:
- Provide/carry out investment services/activities.
- Enter into any business transaction with any person and accept any new client.
- Advertise itself as a provider of investment services.
FTX (EU) Ltd, if this is consistent with existing clients’ wishes, 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.
The President of the Italian-Cypriot Chamber of Commerce, Giuseppe Marino has entered into an agreement with the reputable law firm A. & E. C. Emilianides, C. Katsaros & Associates LLC, also a member of the Chamber, for the purposes of providing support and information to Italian investors of FTX who can then send the related requests to the dedicated desk by sending an email to: info@camcomitacipro.it
Last modified: February 13, 2023