• FTX EU has launched a new website to allow affected users to register and recover their funds.
• Regulators in Cyprus have made provisions for the subsidiary to pay back user funds.
• FTX Japan has announced that it will allow the withdrawal of both fiat and crypto from the 21st.
FTX EU Website Launched to Recover Funds
FTX EU, the European branch of FTX, has launched a new website where affected users can register to recover their funds. Regulators in Cyprus have made provisions for the subsidiary to pay back user funds, allowing customers of FTX EU to try and recoup their money.
Short Operational Period
FTX EU was only in operation for eight months before the company’s collapse. Many clients impacted by the collapse still have their funds tied up in the fallen exchange, but only a small pool of users are expected to benefit from this new recovery system due to its short lifespan.
FTX Japan Allowing Withdrawal
FTX Japan, the Japanese subsidiary, announced on February 20th that it would allow the withdrawal of both fiat and crypto from the 21st thanks to unique protections under Japanese Financial Laws which mandate that cryptocurrency exchanges must separate customers‘ deposits.
The CySEC suspended FTX EU’s operating license following its failure but extended this suspension until March 2023, allowing them time „to proceed with necessary actions“ needed for compliance with regulations.
Users of FTX EU now have an opportunity to try and recoup their money through this new website portal while those using FTX JP are able take advantage of unique protection under Japanese financial laws. Whilst there is no guarantee that all customers will be able to retrieve their funds successfully, this is a step in the right direction as various regulatory bodies make provision for these subsidiaries‘ payment back of user funds.