FTX EU launches withdrawals website to pay back European users:
After a series of events in November 2022, the giant crypto exchange announced bankruptcy and became insolvent. Meanwhile, a US bankruptcy court has permitted FTX’s liquidators to sell off their four active subsidiaries- Embed, LedgerX, FTX Japan, and FTX Europe.
Following a press release on Friday, FTX EU will permit withdrawals from one of its divisions. According to Cyprus law, FTX EU, the company’s European affiliate, has restored segregated funds to consumers. Learn more about the new FTX EU withdrawal website and what that means for customers below.
FTX Saga Explained!
Although FTX EU was only announced in March 2022, the parent company went bankrupt and collapsed in November of that year. How many users were affected when FTX EU became available to those in the Middle East and the Europe Economic Area is unknown. Numbers are not anticipated to be high because FTX EU only became available in March, and the global enterprise failed in November.
Another subsidiary, FTX Japan, has already made reparations to affected clients. It permitted a total withdrawal of funds in late February to around $50 million. Meanwhile, Cyprus Security and Exchanges Commission (CYSEC) delayed FTX.com’s CIF licence suspension, allowing the exchange to operate from December till March 31, 2023.
In addition, the regulatory circular has confirmed that FTX EU cannot provide new services or for a new business relationship with a new client or any person while the authorisation suspension is still in place. The crypto exchange is also banned from accepting client orders or providing investment services in and out of Cyprus.
The CYSEC has also declared that the firm is meant to close any open deals in clients’ contracts and must also return any fees or profits upon their requests.
FTX EU Customers Can Send Requests to New Withdrawal Website
Following FTX Japan’s declaration that it would start accepting withdrawals in the middle of February 2023, FTX EU has now confirmed that it will do the same. The business declared that, in accordance with Cyprus law, it will give consumers a statement of their entitled fiat currency fund balances with regard to the European subsidiary. Following the Cyprus Securities and Exchange Commission suspended the company’s licence, FTX EU was required to repay customer monies.
The website’s launch by FTX EU represents a significant development in the company’s efforts to pay back its clients. Thanks to the website, customers will find it simpler to file withdrawal requests and collect their money. News reports have also revealed that the site’s sole purpose is to compensate users who lost money due to the significant exchange’s breakdown. As a result, it won’t sell any products or provide services beyond them. In addition, FTX EU LTD customers can only access their FIAT balances via the website.
Ultimately, the number of users who lost money in the EU subsidiary is yet unknown with accuracy. But it’s safe to presume that the user count may be lower than that of the US branch considering the brief time the exchange was operational between debut and collapse.