FTX EU LTD Begins Fund Return Process, Subject to Anti-Money Laundering Checks

The Cyprus Securities and Exchange Commission (CySEC) has issued a statement in response to the recent announcement by FTX EU LTD, the Cypriot unit of the failed cryptocurrency exchange FTX, regarding the return of funds to its customers. FTX EU LTD, previously known as K-DNA Financial Services LTD, stated that it has initiated a process to allow customers to request their final balances and withdraw their fiat funds from the company's segregated client accounts.

Withdrawal Process and Anti-Money Laundering Checks

Customers who wish to withdraw their funds from FTX EU LTD will need to verify their balances and submit withdrawal requests through a dedicated website, ftxeurope.eu, according to the exchange's announcement. However, the withdrawals will be subject to standard anti-money laundering and know-your-customer checks, and there may be delays if account details have not been properly verified.

CySEC Chairman Approves FTX EU's Move

CySEC head George Theocharides has authorized FTX EU LTD's relocation, verifying earlier claims that CySEC had allowed the debut of FTX's new website. CySEC, according to Theocharides, is taking measures to safeguard the interests of FTX EU owners and is working closely with the parent company's liquidators in the United States under Chapter 11.

“After months of uncertainty and concern for investors, we are pleased that our work as the Regulator has contributed to this positive development.” We appreciate the FTX Group Administrators' cooperation and assistance in these endeavors. Protecting investors' interests is critical, and CySEC will continue to hold FTX EU Ltd accountable to ensure all withdrawal requests are handled quickly and properly, added Theocharides.

Previous Suspension and Violation Concerns

In November of the previous year, CySEC had asked FTX Europe to suspend its operations and take immediate actions to protect investors. The regulator suspected violations related to the protection of client assets and the suitability of management. FTX Europe, which is a part of FTX Group that filed for bankruptcy after the collapse of the exchange led by Sam Bankman-Fried, was given a month to rectify the issues.

FTX's Bankruptcy Proceedings

FTX, once valued at $32 billion, has faced significant challenges, with its crypto trading arm, Alameda Research, and US business, FTX.us, as well as 130 additional sister companies, being part of the bankruptcy proceedings. In December, CySEC prolonged the termination of FTX.com's CIF authorization, which enabled the bankrupt platform to function throughout Europe, until March 31.

Conclusion

CySEC has responded positively to FTX EU LTD's announcement on the return of funds to customers, confirming its approval of the launch of FTX's new website. The regulator is taking steps to protect the interests of investors and will continue to hold FTX EU Ltd accountable to ensure that withdrawal requests are processed swiftly and appropriately. FTX, which has faced bankruptcy proceedings, has had its CIF license suspension extended by CySEC. Clients who wish to withdraw their funds from FTX EU LTD will need to verify their balances and go through anti-money laundering checks for the process. Overall, the situation continues to evolve, and investors are closely monitoring developments related to FTX's bankruptcy and fund returns.

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