FTX Europe, formerly known as Digital Assets AG, continues to face regulatory hurdles as the Cyprus Securities and Exchange Commission (SEC) extends the suspension of its license until September 2024. Originally established as a Swiss startup, FTX Europe was repurchased by its original founders following the collapse of the FTX exchange.

The recent announcement by Cyprus' securities regulator on April 16 solidifies the continued suspension of FTX Europe's license, prohibiting the firm from offering services and conducting business transactions until compliance with relevant regulatory provisions is ensured. This regulatory decision also entails a ban on providing investment services, accepting new clients, and advertising investment services.

As part of the regulatory mandate, FTX Europe is obliged to fulfill all pending transactions and client requests while ensuring the return of funds and financial instruments to its clients. These measures aim to safeguard the interests of clients amidst the ongoing regulatory scrutiny surrounding the company.

The extension of the license suspension follows the sentencing of former FTX CEO Sam "SBF" Bankman-Fried to 25 years in prison on March 28, highlighting the legal repercussions stemming from FTX's collapse in November 2022. FTX Europe, previously affiliated with FTX, found itself entangled in bankruptcy disputes, eventually leading to its repurchase by its original founders, Patrick Gruhn and Robin Matzke.

Prior to its association with the FTX empire, FTX Europe operated under the name Digital Assets AG, focusing on crypto-related services. Following its acquisition by FTX in 2021 and subsequent rebranding, the company faced challenges culminating in its eventual repurchase by its original founders in February 2024.

Despite the regulatory setbacks, the founders remain optimistic about the future, emphasizing their commitment to ensuring swift payouts to EU clients. The settlement reflects a positive outcome amidst the legal complexities surrounding FTX's international operations, signaling a renewed focus on addressing regulatory concerns and rebuilding trust within the industry.