FTX Trading Ltd. seeks joint administration of 102 companies in total, dropping 32 of the 134 companies named in its original filing and regulators with oversight of FTX entities begin to revoke and suspend licences.
On 11 November, FTX Trading Ltd filed for Chapter 11 bankruptcy in the United States and included 133 affiliated companies in the bankruptcy proceedings. VASPnet previously posted about the regulatory status of companies mentioned in the Chapter 11 bankruptcy petition and in related Twitter posts made subsequently by FTX.
On 14 November 2022, FTX Trading Ltd. motioned the US Bankruptcy Court in Delaware seeking joint administration of 102 companies in total, dropping 32 of the 134 companies named in its original filing and adding two new ones to the proceedings. The two additional companies are West Realm Shires Inc. and FTX EU Ltd., both of which appear to be unregulated for VASP activities. The total number of companies now involved in FTX’s bankruptcy proceedings is 102. Those now identified as excluded from the Chapter 11 proceedings has increased to 39.
Of the 11 regulated entities in the Chapter 11 bankruptcy filing from 14 November, one has had its regulated status withdrawn. FTX Exchange FZE had its licence suspended by the Dubai Virtual Assets Regulatory Authority (VARA) in the UAE on 16 November 2022.
The Monetary Authority of Singapore (MAS) issued a statement on 14 November noting that Quoine Pte. Ltd, an FTX subsidiary which operates the Liquid Exchange in Singapore, “is currently exempt from licensing while its licence application is under review”.
Here is the list of the 11 regulated entities that have filed for bankruptcy, as of 14 November 2022:
A regulated entity, Altalix Ltd. was originally included in the bankruptcy petition and has since been dropped from the Chapter 11 proceedings. Altalix Ltd. is regulated by the Financial Conduct Authority (FCA) in the UK. As of 18 November 2022, the company maintains its status as a regulated entity.
Several FTX companies excluded from the Chapter 11 proceedings have had their regulated status revoked or suspended. FTX Digital Markets Ltd. had its Digital Asset Business registration suspended by the Securities Commission of The Bahamas (SCB) on 12 November 2022 and FTX Australia Pty Ltd. had its licence suspended on 16 November 2022 by the Australian Securities & Investments Commission (ASIC).
Here is the list of the five regulated entities that are specifically excluded or removed from the Chapter 11 bankruptcy proceedings and their VASP regulatory status as of 17 November 2022:
Questions about the regulatory status of service providers conducting cryptoasset activities? Get in touch with us at contact@vaspnet.com.
