Cyprus-Based FTX Europe To Start Processing Withdrawals

On Friday, March 31st, the Cyprus-based FTX EU announced it will start processing customers’ withdrawal requests. For the time being, users will be able to submit their requests for segregated funds and will undergo a know-your-customer (KYC) process before being approved. The press release also warns that withdrawals will be open specifically to FTX EU customers, and not customers of other parts of FTX that are based in Europe.

FTX EU To Start Processing Withdrawals

According to an announcement from Friday, March 31st, FTX EU, the Cyprus-based branch of SBF’s company, has started processing withdrawal requests from customers. A dedicated website. ftxeurope.eu, has been provided for the purpose. According to the press release, users will be provided with a statement of the balance of the funds they’ll be able to withdraw.

FTX EU LTD will provide to customers a statement of the balance of fiat currency funds to which they are entitled in accordance with MiFID II as transposed to L. 87(Ι)/2017.  Following completion of this process and subject to sufficiency of funds, each customer of FTX EU LTD will be entitled to withdraw such customer’s balance (in fiat currency) as segregated in designated customer accounts in compliance with L. 87(Ι)/2017 and the terms of its Cyprus license 273/15 (currently suspended) held by FTX EU LTD.

After entering their request, customers will undergo KYC and anti-money-laundering checks. The press release also warns that withdrawal times may differ depending on the bank used. It also warned that withdrawals will be available exclusively to FTX EU customers, and not to Europe-based customers of other FTX entities.

According to the press release, the email containing information on customer claims sent by FTX’s restructuring advisor, Kroll, isn’t necessarily reflective of the actual funds that will be accessible to the customers of FTX EU. The Cyprus-based entity was initially launched in early May 2022.

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The Complex Search for FTX’s Assets

Not long after FTX went bankrupt, numerous reports of comingling of assets and atrocious record-keeping practices signaled that the search for the company’s assets is likely to be tough. The suspicions were further bolstered after the firm’s new management hired forensic investigators in an effort to try and find the missing money. 

This year brought several updates about the search. FTX’s new management published several reports on the fruits of their labor and stated that the Group still has a “massive shortfall”. Notably, the press releases confirmed that, despite Sam Bankman-Fried’s repeated claims, FTX.US is also not fully solvent.

The company’s creditors, however, aren’t the only ones seeking to receive money from the company. Sam Bankman-Fried recently filed a request to have the firm’s D&O insurance cover his legal fees—a request resolutely opposed by FTX’s debtors and creditors. So far, along with today’s announcement by the Cyprus-based entity, FTX Japan recently opened withdrawals for its customers.

Do you think we’ll soon get news of other FTX entities opening withdrawals? Let us know in the comments below.