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30K Aussies Deserted, FTX Australia’s License Suspended
30K Aussies Deserted, FTX Australia’s License Suspended

30K Aussies Deserted, FTX Australia’s License Suspended

30K Aussies Deserted, FTX Australia’s License Suspended

Following the appointment of voluntary administrators to recoup the funds of nearly 30,000 Australians and 132 Australian companies, Australia’s financial markets regulator suspended FTX Australia’s financial license.

The Australian Securities and Investments Commission (ASIC) announced the suspension of the Australian Financial Services (AFS) license of the local entity of FTX until May 15, 2023.

FTX Australia’s AFS license allowed it to create a market for derivatives and fx contracts to retail and wholesale clients based in Australia before its suspension. Traders who signed for digital trading assets were routed through FTX Australia.

FTX Australia has until Dec. 19 to provide limited financial services strictly related to the termination of existing derivative contracts with its clients. On Nov. 11, John Mouawad, Scott Langdon, and Rahul Goyal of KordaMentha, a Sydney-based investment and advisory firm, were appointed as voluntary administrators to restructure FTX Australia and its subsidiary FTX Express.

KordaMentha will try to recoup the funds of the 30,000 Australian investors and 132 companies due to the FTX collapse. The employees of FTX Australia have been cooperating with appointed administrators to resolve the issue.

FTX Australia’s customer-focused operations started just eight months ago.
ASIC noted that FTX Australia could apply to the Administrative Appeals Tribunal to challenge the suspension.

Last week was a tumultuous one for FTX as the 130 firms tied to it, including FTX US and Alameda Research, filed for bankruptcy on Nov.11, the same day FTX’s CEO Bankman-Fried also resigned from his position.

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