FTX Suspension Orders By SEC Of Cyprus

In response to FTX filing for Chapter 11 bankruptcy in the US, the Securities and Exchange Commission of Cyprus, or CySEC, reportedly issued a statement asking the exchange to suspend operations for its European division.

On November 9, according to the CySEC, it asked FTX Europe to halt operations and take a number of steps right once to protect investors.

Given that the exchange was one of the about 130 companies in the FTX Group that will be declaring bankruptcy, it is unclear why the financial regulator decided to call the cryptocurrency exchange again.

The island nation’s government granted CySEC permission for the FTX arm to conduct business there from its regional offices in March; the company’s European headquarters are located in Switzerland. 

Related Reading | Why FTX May Soon Be Facing Tougher Regulations

Financial officials around the world have responded to FTX’s liquidity problems by suggesting more rules for cryptocurrency companies and freezing assets with the exchange’s local operations, as happened in the Bahamas.

Sam Bankman-Fried, the chief executive officer of FTX, stated on November 11 that he will be working to provide clarification on where things are in terms of user recovery as quickly as possible. In the midst of bankruptcy proceedings, he resigned, and John Ray assumed control as CEO.

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