The Cyprus Securities and Exchange Commission (CySEC) has once again extended the suspension of the operating license of FTX (EU) Ltd, the European branch of the now-defunct cryptocurrency exchange FTX.
This latest extension was announced today and will prolong the suspension until September 30, 2024. The EU subsidiary’s license was first suspended in November 2022 and has seen several extensions since.
FTX EU, which first received approval from CySEC in March of the previous year and was fully authorized as a Cyprus Investment Firm (CIF) in September, is not permitted to offer cryptocurrencies directly under its Cypriot license.
However, it is allowed to offer derivative products and utilize the license to provide services across the European Economic Area.
Despite FTX EU currently being in the midst of bankruptcy proceedings, the CySEC has emphasized that the suspended license bars the company from providing or engaging in any investment services or activities.
It is also prohibited from initiating any business transactions with persons, accepting new clients, or advertising itself as an investment services provider.
In the United States, FTX and over a hundred of its affiliates filed for bankruptcy in November 2022 shortly after allegations of dubious business practices by its former CEO, Sam Bankman-Fried, came to light.
Bankman-Fried, who was once hailed as a cryptocurrency billionaire, has been convicted on multiple criminal charges and sentenced to 25 years in prison.
His lawyers recently appealed both the conviction and the sentence.
In related developments, several other high-ranking officials from FTX and its affiliate Alameda Research have pleaded guilty to various civil and criminal charges.
They have testified against Bankman-Fried during his trial and are currently awaiting their own sentences.
Amid these proceedings, U.S. Senators Elizabeth Warren and Chuck Grassley have called for a thorough examination of the interactions between Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), and Bankman-Fried prior to the exchange’s collapse.
They are particularly interested in the nature of their relationship during this period.