FTX EU, a subsidiary of the bankrupt crypto exchange FTX, has launched a new website that allows customers to withdraw their fiat balances from the platform. The move follows the collapse of FTX and Alameda Research, which has left customers struggling to recover their funds.
Fiat Withdrawal Only
The recently launched website will only manage fiat balance claims, and no other services will be available. FTX EU has regional headquarters in Cyprus and Switzerland and is registered with the Cyprus Securities and Exchange Commission (CySEC).
License Suspension
CySEC revoked FTX EU’s operating license in November 2022 due to violations of market laws regarding the composition of the FTX EU board and the need to safeguard client assets’ safety, among other factors. The suspension has later been extended until March 2023, giving FTX EU more time to adhere to regulations and return client funds.
Returns for Other FTX Funds Vary
FTX’s main branch, which served US clients, is in the process of bankruptcy, with the firm owing $3 billion to its 50 largest creditors and $5 billion to nine million customers. However, it is unclear when clients will receive their funds.
FTX Japan launched its own withdrawal process through Liquid Japan in February 2023. Some users reported having difficulty withdrawing their funds from FTX Japan, as the company declined their withdrawals. FTX DM, based in the Bahamas, is currently in liquidation.
FTX EU Opened in March 2022
FTX EU opened in March 2022, just months before the collapse of FTX and Alameda Research. Although comprehensive user statistics are unavailable, each division will likely have fewer customers than FTX’s main branch.
Founder’s Legal Issues
Sam Bankman-Fried (SBF), the founder and former CEO of FTX, who is believed to be primarily responsible for the collapse of FTX and Alameda Research, has not pled guilty to this day. His legal team is still working hard to keep his client from paying any penalties because of “negligence” in management.
Conclusion
FTX EU’s new fiat withdrawal website is a welcome development for customers who have been struggling to recover their funds. However, with FTX and Alameda Research’s bankruptcy, the fate of other FTX branches and their clients remains uncertain. It remains to be seen if FTX EU will be able to adhere to regulations and return client funds before the extended deadline in March 2023.
