Authorities In Cyprus Are Considering Revoking FTX EU’s Crypto License

Due to the broad contagiousness, authorities in Cyprus are considering removing FTX’s authorization to conduct digital asset trading in Europe. Sam Bankman-Fried’s exchange would be in grave jeopardy if this took place.

CySec May Revoke FTX EU’s Crypto License

FTX received an “operational license” in July. This came after getting permission from the Cyprus Securities and Exchange Commission (CySec). The regulatory body allowed SBF’s exchange to provide its services in every European market. Currently, Switzerland will be the site of a regional office, according to EthereumWorldNews.

Bloomberg claims that CySec may change its mind and revoke the license. FTX activities in Europe would be prohibited until further notice if this were to occur. As of this writing, the cryptocurrency exchange is the subject of several probes. Additionally, it is at the center of a multibillion-dollar controversy.

FTX Meltdown Calls for Regulatory Investigations

Investigations are ongoing into FTX and its American affiliate (FTX. U.S.). Several U.S. government authorities are conducting these investigations. They consist of the Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).

Regulators contacted Binance, another cryptocurrency exchange. The regulators sought to inquire about what knowledge Binance may possess regarding FTX’s operations. Binance notably backed out of a deal to buy FTX after looking into the company’s financial documents.

The cryptocurrency exchange has reportedly stopped withdrawals, according to complaints from customers who are unable to withdraw money. Justin Sun is the founded Tron (TRX). Sun plans to implement a mechanism that will allow token holders to redeem their tokens for other cryptocurrencies. These currencies include, among others, the Huobi token (HT) and Tron (TRX). 

Mismanagement Of Customer Funds

Bankman-Fried said in a tweet that he needed funds to improve the financial crisis. SBF reported no up-to-date details on these efforts at the point of publishing.

An investment of over $6 billion is required for the cryptocurrency exchange to continue operating. The Wall Street Journal, CoinDesk, and Bloomberg all provided projections for this.

After lending client cash, the trading platform caused a sizable hole in Alameda Research’s financial statements. Bankman-Fried established Alameda Research.

Since FTX filed for bankruptcy, several of the company’s top executives and employees have left or voiced betrayal. According to specific reports, a few workers may have been aware of the improper management of customer funds and other options.

According to reports, Zane Tackett told VIP clients that the whole team “had 0 clues” of what was happening. Tackett oversaw Institutional Sales in his prior position.

Leave a Reply

Your email address will not be published.


What is Copy Trade and How It Works?

Copy Trade Intro Copy trade or copy trading is a type of trading in which one trader (the “follower”) automatically copies the trades of another trader (the “leader”). This is done through a copy trading platform, which connects the follower and leader and allows the follower to automatically copy the leader’s trades in real-time. How […]

Coins Capital Review, – Is Coins Capital Scam Or Legitimate?

Coins Capital Trading Platform Rating 4.3 Summary Read our Coins Capital review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is Coins Capital scam or legit” and much more! Coins Capital Review You have been thinking for a long time if trading is for you. You have finally […]

AI Center Indicts ChatGPT Developer of Trade Law Violations: Claims Bias & Deception

The organization alleges that the creator of ChatGPT has violated Section 5 of the Federal Trade Commission Act with the release of GPT-4. This section of the act prohibits any practices or acts considered deceptive or unfair and that affect commerce. CAIDP has complained to the US Federal Trade Commission, intending to prevent the distribution […]

Investors Excited As XRP Market Capitalization Hits $20 Billion

It’s been wide jubilation today after XRP investors heard the announcement that the market capitalization has surged to $20 billion. XRP: a cryptocurrency developed and managed by Ripple, a San Francisco, United States, distributed data company. It was gathered that the coin itself responded to this development through a climb in price – it was […]

GlobalTrades Review, – Is Global Trades Scam or a Good Broker?

GlobalTrades Trading Platform Rating 4.6 Summary Read our Global Trades review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is scam or legit” and much more! GlobalTrades Review As people look at cryptocurrencies and their immense success, they are eager to start their own trading businesses. While […]