-FTX EU LTD (Cyprus) initiates the return process of segregated funds in accordance with Cyprus law
Customers will be able to submit requests on a specific website
LIMASSOL, Cyprus, April 3, 2023 /PRNewswire/ — FTX EU LTD (formerly K-DNA Financial Services LTD) today announced that it has initiated processes to allow FTX EU LTD clients to request final balances prior to the withdrawal of fiat currency funds held in segregated client accounts of FTX EU LTD.
FTX EU LTD will provide clients with a statement of the balance of the fiat currency funds to which they are entitled in accordance with MiFID II transposed to L. 87(Ι)/2017. Upon completion of this process and subject to sufficiency of funds, each client of FTX EU LTD shall be entitled to withdraw such client’s balance (in fiat currency) segregated into designated client accounts pursuant to L. 87(Ι)/ 2017 and the terms of its Cyprus license 273/15 (currently suspended) held by FTX EU LTD.
Balances will be reported and verified, and withdrawal requests may subsequently be submitted through the following website established for this purpose: ftxeurope.eu. Any withdrawal request will be subject to the usual “know your customer” and anti-money laundering checks, and a customer’s withdrawal may be delayed if bank or other account details have not been sufficiently verified. Each customer of FTX EU LTD is also informed by email at the email address of such customer on file with the customer.
Withdrawals will only be available to FTX EU LTD clients who opened their accounts via FTX.com/eu (ie after March 7, 2022). This announcement does not refer to customers of any other FTX group company, even if such customers are located in Europe.
On March 30, 2023, clients of FTX EU LTD received an email communication from Kroll notifying them of information about claims scheduled in connection with the Chapter 11 case of FTX Trading LTD and its affiliated debtors, (collectively , the “Debtors”), currently pending in the United States Bankruptcy Court for the District of Delaware and administered jointly under case number 22-11068 (the “Bankruptcy Cases”). As clearly stated in Kroll’s email, the scheduled claims information contained in such email is not a statement by the Debtors as to the amount or validity of any claim by any person. Information on scheduled claims does not reflect the actual net balance of FTX EU LTD customer accounts. Rather, it is an amount derived from the Debtors’ historical internal records and its submission was required under applicable law in connection with Bankruptcy Cases. Among other things, the scheduled claim information does not reflect the fact that all FTX EU LTD client positions were closed and settled in eligible currency as of November 12, 2022, in accordance with the Terms of Service and the FTX EU LTD Execution Policy, due to the closure of the FTX platform on said date.
Prior to the closure of the international platform FTX.com, FTX EU LTD operated as a MiFID II regulated investment firm offering multi-asset derivatives trading, in particular with crypto assets as underlyings. The Cyprus Securities and Exchange Commission has suspended its license and ordered FTX EU LTD to return the funds to its clients who request a refund.
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