The saga of the collapsed cryptocurrency exchange, FTX, continues to unfold, with some of its former operations still grappling to stay afloat. The Cyprus Securities and Exchange Commission (CySEC) has decided to extend the suspension of FTX Europe’s license, preventing the firm from offering any services until September 2024.

In an official announcement made on April 16, the Cypriot regulator stated that FTX Europe must take necessary steps to comply with the provisions of the Investment Services and Activities and Regulated Markets Law.

As part of this regulatory action, FTX Europe is prohibited from offering investment services, entering into any new business agreements, or accepting new clients. The company is also banned from advertising its services.

However, CySEC also instructed FTX Europe to complete all pending transactions and respond to client requests. Additionally, the company must return any funds and financial instruments belonging to its clients.

This move comes shortly after a U.S. federal judge sentenced former FTX CEO Sam Bankman-Fried to 25 years in prison on March 28. He was convicted of seven charges, including fraud and conspiracy to launder money.

FTX Europe, which was once part of the FTX empire, was included in the company’s Chapter 11 bankruptcy filing in the United States following FTX’s collapse in November 2022.

Before being acquired by FTX, FTX Europe was known as Digital Assets AG, a Swiss crypto startup founded by Patrick Gruhn and Robin Matzke. In 2021, the company was sold to FTX for $323 million and rebranded as FTX Europe.

Amid ongoing bankruptcy proceedings, FTX sold FTX Europe back to its original founders for $32.7 million in February 2024. Following the settlement, Matzke expressed satisfaction with the outcome, stating that FTX’s European expansion had been progressing well before the collapse of the parent company. Matzke also emphasized the importance of quick payouts to EU clients.