By George Ward
After experiencing liquidity issues, FTX crypto exchange, the parent company of FTX EU, filed for bankruptcy in the United States in November 2022. The incident left many customers unable to access their funds on the platform.
However, FTX EU remained operational and continued to offer trading services to its European customers. Now, nearly five months after the FTX bankruptcy, FTX EU has launched a new website to facilitate withdrawal requests for its European customers.
The website allows users to submit requests to withdraw their funds from the platform. The Cyprus Securities and Exchange Commission (CySEC) has approved a new website domain name, per multiple reports.
This is a significant development for FTX EU as it provides a legitimate and authorized platform for its European customers to request withdrawals. The approval by the Cyprus Securities and Exchange Commission indicates that the new website meets its regulatory requirements and standards for trading platforms operating in the European market.
FTX EU And FTX Japan Find Means To Compensate Its Affected Users
The newly launched website will only allow European customers of FTX to submit their withdrawal requests. However, the website will not offer any other products or services.
According to an email notification from FTX Europe, the sole purpose of the new domain is to pay back its Europe-based users whose funds are trapped on the exchange. FTX EU provided services to customers in the Europe Economic Area (EEA) and the Middle East.
However, it is unclear how many customers were affected by the parent platform’s collapse and subsequent bankruptcy in November 2021. This lack of clarity may be attributed to the fact that FTX EU was a separate entity with different operations and customer base from the parent platform.
Therefore, it is possible that only a portion of the customers in the affected regions was impacted by the collapse. The exact number of affected customers remains unknown.
Meanwhile, FTX Japan, another subsidiary of the global trading platform FTX, has already taken steps to compensate impacted customers. In February 2023, the company announced that it would allow the total withdrawal of funds, which amounted to approximately $50 million.
On November 9, 2022, the Cyprus Securities and Exchange Commission requested FTX EU to halt its operations, and two days later, FTX Group and its affiliated companies filed for bankruptcy. This included FTX EU, which had only recently become operational in March 2022.