The Cyprus Securities and Exchange Commission (CySEC) issued a statement amid the FTX filing for bankruptcy; Under Chapter (11) in the United States of America, the exchange is required to stop the operations of its arm in Europe.
According to a Reuters report, on Friday, the Cyprus Securities and Exchange Commission said it had asked FTX-Europe to suspend its operations and immediately move forward with a number of measures to protect investors on November 9. To reiterate its call to the cryptocurrency exchange, given that FTX-Europe is one of about 130 companies in the FTX group that will file for bankruptcy.
The Cypriot authority agreed to operate the island nation's FTX arm from its regional headquarters in March, with its European headquarters in Switzerland. Amid the liquidity issues in the FTX, global financial policymakers responded with proposals for additional regulations on crypto companies, as well as an asset freeze with local firms on the exchange, as was the case in the Bahamas.
FTX CEO Sam Bankman-Fried said last Friday that he would work to clarify the situation in terms of getting users back as soon as possible. He resigned amid bankruptcy proceedings, and John Ray took over as CEO.
FTX had suspended withdrawals according to cross-chain data, which revealed that the US-based platform had suspended withdrawals on Friday, November 11, 2022.
Last Thursday, the original announcement alerted users to please close any transaction, while assuring that its users will still be able to make withdrawals, as it will remain open.
