FTX Europe: A Prolonged Saga of Suspensions and Settlements
The Never-Ending Suspension
FTX Europe’s troubles continue as the Cyprus Securities and Exchange Commission (CySEC) has once again extended its suspension. This marks the fourth extension since CySEC first halted its operations on November 11, 2022—coinciding with FTX’s collapse in the United States.
For a company that operated for just eight months as a European Union-regulated investment firm, its legacy is riddled with controversies, lawsuits, and regulatory roadblocks.
The Fall of FTX and Its European Arm
FTX’s dramatic downfall in November 2022 led to a Chapter 11 bankruptcy filing in Delaware, rocking the crypto world. With concerns about mismanagement and a dire need to protect client assets, CySEC wasted no time suspending FTX Europe’s license.
Adding to the chaos, reports surfaced that a hack drained $600 million from FTX and FTX US-linked wallets right around the time of the bankruptcy.
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FTX Europe Sold Back to Its Original Owners
FTX Europe originally started as Digital Assets AG, a Swiss startup, which FTX acquired for a whopping $323 million in 2021. However, as FTX crumbled, its restructuring team sought to recover the staggering acquisition costs, claiming they had massively overpaid.
This led to a legal standoff with the original owners, which dragged on for months.
Finally, in February 2024, FTX agreed to sell FTX Europe back to its founders for just $32.7 million, settling the ongoing dispute. Talk about a dramatic valuation drop!
The Aftermath: What’s Left of FTX Europe?
FTX Europe is barely a shadow of its former self. Its trading services are gone, and the only function left on its website is an option for users to check their balances and request withdrawals.
For users who don’t withdraw their funds, FTX Europe states that the funds will be moved into a “client segregated account” for up to six years.
FTX EU Homepage
FTX EU homepage. Source: FTX Europe
What’s Next for FTX Europe?
With its license still under suspension, it’s unclear if FTX Europe will ever return to full operations. The recent sale to its original founders may be an opportunity for a fresh start—or the final chapter in its tumultuous journey.
One thing is certain: FTX’s ripple effect is still being felt across the crypto industry, and regulators are keeping a very close eye on how similar firms operate.
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💬 What are your thoughts on the FTX Europe saga? Do you think the original owners can bring it back to life, or is it a lost cause? Let’s discuss in the comments!
