No local FTX reboot as ASIC cancels its Australian licence
Key Points
- Regulator cancels license of FTX’s Australian business
- US administrators have flagged they might reboot the crypto exchange to pay creditors
- Whether Australian users have a claim here in Australia or in the United States remains unclear
The Australian arm of Sam Bankman-Fried’s collapsed cryptocurrency exchange is unlikely to ever re-open after the Australian regulator cancelled its local financial services licence.
About 30,000 Australian investors are embroiled in FTX’s bankruptcy proceedings after revelations last year that about $8.7 billion in customer money had been drained from individual accounts and used for personal trading and venture capital investments.
An earlier version of this story incorrectly suggested the licence had been suspended and then reinstated. ASIC suspended FTX Australia’s licence, but it retained financial provisions; the licence is cancelled.
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