• FTX EU has launched a new website where European customers can submit withdrawal requests to try and recover their funds
• The European branch of FTX only operated for 8 months before the company’s collapse
• Regulators in Cyprus have made provisions for FTX EU to pay back user funds
FTX EU Launches New Site to Recover Funds
FTX EU, the European branch of crypto exchange FTX, has launched a new website that allows users to submit withdrawal requests in order to recover their funds. This comes as regulators in Cyprus have made provisions for the subsidiary to pay back user funds.
Prior Collapse of FTX
FTX EU was only operational for eight months before the company’s collapse. It is unclear how many users were registered with the EU branch, but due to its short lifespan, it is not expected to be very substantial. On the other hand, FTX JP, the Japanese subsidiary, announced on February 20th that it would allow users to withdraw both fiat and crypto from 21st February.
Regulatory Protection
Japanese Financial Laws mandate that cryptocurrency exchanges must separate customers‘ deposits. As such, this allowed users of FTX Japan access to their funds. Meanwhile, FTX EU was regulated by Cypriot SEC (CySEC), which suspended its operating license following its failure. However, in late December 2022, CySEC extended this suspension until March 2023 so that „the firm could proceed with necessary actions“.
Recovery Efforts
With the launch of this new site from FTX EU on Friday 31 March 2021, customers will be able to check their balances and request a withdrawal from here. While it may not benefit many people due to its short lifetime as an entity and low number of customers registered with it, it still provides an opportunity for some people affected by the collapse of FTX attempt recovery efforts through this portal.
Conclusion
The launch of this website provides an opportunity for some affected clients who have had their funds tied up since the fall of FTX attempt recovery efforts through this platform offered by FTP EU; however due to its short lifespan and low customer numbers registered with it – recovery efforts may not help many people in Europe Economic Area or Middle East who were impacted by its collapse.