It looks like FTX Europe customers will be getting their funds soon after almost five months of waiting following the implosion and bankruptcy filing of the Bahamian-headquartered exchange. A website has been launched to enable FTX EU users to submit their withdrawal requests.
The website with the domain name https://ftxeurope.eu/ will solely be for withdrawals as no products or services will be offered on it.
Noteworthy, the Cyprus Securities and Exchange Commission (CySEC) approved the launch of this withdrawal website. This same regulator was responsible for the withdrawal suspension on FTX EU on November 9th, right before FTX Group and its other 130 affiliates filed for bankruptcy in the United States.
“Please be informed that our new domain, www.ftxeurope.eu, has been approved by our regulator CySEC as you have well identified. The website will only be used for all FTX EU LTD clients to be able to claim their FIAT balances. There will be no services or products offered via this website,” FTX EU explained in an email.
The number of Europe Economic Area and Middle East users of FTX exchange impacted by the implosion is not certain yet.
This is partly because FTX Europe was inaugurated in March 2022, about seven months before misfortune struck. FTX Japan has also authorized total withdrawals for users who were affected by the implosion. Altogether, outflows worth about $50 million have been recorded on the platform.
FTX’s Attempt to Compensate Customers
The U.S. regulator, the Securities and Exchange Commission (SEC) seized up to $3.5 billion from the Bahamian-headquartered exchange right after it imploded and filed for bankruptcy. At the time when FTX Group filed for bankruptcy protection, John J. Ray III who took over as the Chief Executive Officer (CEO) after Sam Bankman-Fried stepped down said
“The immediate relief of Chapter 11 is appropriate to provide the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders. […] The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”
To date, FTX is still trying to recover some of the donations that Bankman-Fried made during his time as CEO. These are donations made to political figures, political action funds as well as charity organizations.
