Recently, there have been two new developments in the bankruptcy of FTX.
CySEC Extends Authorization Suspension Period for FTX Again
On April 12th, the Cyprus Securities and Exchange Commission (CySEC) announced an extension of the suspension of authorization for FTX (EU) Ltd until September 30th of this year.
The suspension of CySEC's authorization for FTX began in November last year during the company's liquidity squeeze, and was subsequently extended by CySEC until March 31, just past. This is already the second extension of the authorization suspension period.
A spokesperson for the CySEC agency stated that "this extension is to enable FTX (EU) Ltd to take necessary action to comply with the relevant provisions of the 2017 Investment Services and Activities and Regulated Markets Act." CySEC also stated that during the suspension period, as long as it meets the wishes of its existing customers, FTX (EU) Ltd can complete all transactions of its own and customers according to their wishes, And return all funds and financial products belonging to the customer.
Currently, only Japanese customers can withdraw FTX funds
On the same day, FTX's lawyer Andy Dietderich stated at a hearing in the US bankruptcy court that FTX had recovered over $7.3 billion in cash and current encrypted assets.
Dietderich stated that FTX is currently negotiating with stakeholders on a plan to restart its business in the future, and the exchange may make a final decision on restarting its business this quarter. But the lawyer did not indicate to FTX clients whose encrypted deposits were locked what restarting the business represented. At present, it is unclear whether the funds recovered by FTX will be used to restart the exchange or to repay customer funds. It is expected that restarting the exchange will require external funds or the sale of some of the exchange's assets.
Currently, FTX is still developing a preliminary bankruptcy protection plan, in order to provide FTX with a way out of bankruptcy.
Lawyer Dietderich added: Due to Japan's relatively complete cryptocurrency regulations, currently, globally, FTX users in Japan are the only group able to withdraw account funds.
