Cyprus has decided to extend the suspension of FTX Europe's license until September, as the saga of the collapsed cryptocurrency exchange FTX continues. Formerly known as Digital Assets AG, FTX Europe, initially a Swiss startup, was returned to its original founders post-FTX's bankruptcy.

The Cyprus Securities and Exchange Commission (SEC) officially announced the decision on April 16, mandating FTX Europe to take necessary actions to comply with relevant laws. The extension prohibits FTX Europe from offering investment services and conducting business transactions, while also banning it from accepting new clients or advertising investment services.

However, the regulator requires FTX Europe to fulfill all pending transactions and return funds and financial instruments to its clients upon request. This development follows the sentencing of former FTX CEO Sam "SBF" Bankman-Fried to 25 years in prison for fraud and money laundering.

After FTX collapsed in November 2022, FTX Europe, its affiliate, was part of FTX's Chapter 11 filing in the United States. Before its association with FTX, FTX Europe operated as Digital Assets AG, founded by Patrick Gruhn and Robin Matzke. Sold to FTX in 2021 for $323 million, it rebranded as FTX Europe. Following bankruptcy disputes, FTX sold FTX Europe back to its founders in February 2024 for $32.7 million.

Matzke expressed satisfaction with the settlement, noting FTX's European expansion was progressing until its international failure in November 2022. He affirmed their commitment to ensuring prompt payouts to EU clients.