Australian financial services regulator, local body of its stock market FTXAustralia announced that it has revoked its financial license.
The Australian Securities and Investments Commission announced the cancellation, which took effect on July 14, as of today. FTXAustralia will be allowed to provide limited financial services while completing relationships with clients by 12 July next year. FTX Australia had around 30,000 customers and served 132 local companies. The regulator stated that by then it will be mandatory to make adjustments to compensate customers.
Australia’s local FTX organization is in trouble
In November, ASIC announced that the Australian Financial Services, which allowed FTX Australia to set up derivatives and currency contracts for local customers ( AFS ) suspended its license. The suspension action comes just days after FTX filed for bankruptcy on November 11, 2022.
On the same day as FTX’s bankruptcy, volunteer managers at Sydney-based investment and advisory firm KordaMentha, FTX Appointed to assist in the restructuring of Australia and FTX Express. In a report he submitted to a US bankruptcy court last month, FTXAn official of .com said it has recovered about $7 billion in liquid assets, but estimates that a total of $8.7 billion of customer assets were misused.
