The financial license of FTX Australia, the local subsidiary of the bankrupt cryptocurrency exchange, has been canceled by Australia's financial services regulator. The Australian Securities and Investments Commission announced the cancellation on July 19, and it took effect from Ju ly 14. Despite the cancellation, FTX Australia will be allowed to provide limited financial services until July 12 next year when it will cease transactions with clients. During this period, the company is required to make arrangements to compensate its customers, which cu Currently an amount to approximately 30,000 retail clients, serving 132 local businesses.
The suspension of FTX Australia's Australian Financial Services (AFS) license occurred in November, following Bahamas-based FTX's bankruptcy filing on November 11, 2022. Shortly after FTX's bankruptcy, the voluntary administrators of Sydney-based investment and advisory firm KordaMentha were appointed to assist in the restructuring of FTX Australia and its subsidiary FTX Express.
A recent report submitted to the US Bankruptcy Court by the head of restructuring for FTX's global entities revealed that the firm had recovered around $7 billion in liquid assets. However, it estimated that approximately $8.7 billion worth of client assets had allegedly been misappropriated.
Reports suggest that FTX may undergo a relaunch as a brand new exchange, and its restructuring team is currently engaging in discussions with potential parties interested in financially supporting such a restart. The situation remains closely monitored as the company navigates s through its restructuring process and compensates its affected clients.
