Cyprus Regulator Blocks FTX Europe from Reopening Until 2025
This marks the fourth extension of the suspension since CySEC initially halted FTX EU’s operations on November 11, 2022, one being in April...

The Cyprus Securities and Exchange Commission (CySEC) has extended its suspension of FTX’s European operations, prohibiting the troubled crypto exchange from offering services, taking on new clients, or promoting its platform in the region. This extension, announced on November 5, now stretches the suspension to May 30, 2025, as the exchange nears the two-year anniversary of its collapse.
This marks the fourth extension of the suspension since CySEC initially halted FTX EU’s operations on November 11, 2022, one being in April.
Excerpt from CySEC’s decision vis-a-vis FTX Europe. Source: CySEC
The original suspension followed FTX’s filing for bankruptcy in the United States and arose from concerns over the “suitability of the members of the management body” at FTX Europe and the need to protect client assets.
CySEC’s actions at the time aligned with the news of a major security breach reportedly draining $600 million from FTX-linked wallets.
Cyprus SEC lengthens the suspension of FTX Europe. Source. Cyprus SEC
FTX Europe, which had been operating as an EU-regulated entity for only eight months before the suspension, had initially entered the European market through a $323 million acquisition of the Swiss startup Digital Assets AG in 2021. This acquisition allowed FTX to offer trading services in multi-asset derivatives under EU regulation. However, the hefty acquisition price later became a point of contention as FTX’s restructuring team sought to recoup costs, calling the amount a “massive overpayment.” This led to legal disputes with the original owners.
FTX EU Allowed to Only Engage in Fund Recovery Activities
A resolution came in February 2024, when FTX agreed to return FTX Europe to its original founders for $32.7 million, settling the ongoing dispute. As a result, the FTX Europe website has since been restricted, providing only a portal for clients to check their balances and submit withdrawal requests. Any unclaimed client funds will remain in a segregated account for up to six years, according to information available on the platform’s FAQ page.
FTX EU homepage. Source: FTX Europe Help Desk
CySEC’s recent decision permits FTX EU to continue processing client transactions and facilitate the return of funds, though it remains barred from offering any new services or marketing itself within the European Union.

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