Australia’s securities regulator announced on Wednesday that as of July 14, it has revoked the licence of the local branch of the defunct American cryptocurrency exchange FTX.
FTX, a company with its headquarters in the Bahamas and a $32 billion valuation in January 2023, filed for bankruptcy protection in the United States last November, claiming it was unable to fully reimburse consumers who had made deposits on its exchange.
Since then, the industry has struggled under the attention of international regulators, and FTX founder Sam Bankman-Fried is being sued criminally by the American government for alleged fraud. He has entered a not guilty plea and has refuted the accusations.
Last November, the Australian Securities & Investments Commission revoked FTX’s permission to transact in derivative and foreign exchange transactions for retail and wholesale clients by suspending the licence until May.
Until July 12, 2024, FTX Australia may continue to offer restricted financial services for terminating existing derivatives with clients, the regulator announced on Wednesday.
The conditions for FTX Australia to remain a member of the Australian Financial Compendium are unaffected by the licence termination.
