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Gungun Bhatia
Nov 16, 2022
by Gungun Bhatia

FTX Australia Licence Suspended, Leaving 30K Australians Stranded

FTX Australia Licence Suspended

Table of contents

  1. FTX Australia AFS Licence Suspended
  2. KordaMentha to Restore Cash
Following the appointment of a volunteer administrator to assist approximately 30,000 Aussies and 132 Australian firms in recovering their cash from FTX, FTX Australia financial licence has been suspended by Australia's financial markets regulator. On November 16, the Australian Securities and Investments Commission (ASIC) released the announcement, suspending the local company of FTX's AFS license until May 15, 2023.

FTX Australia AFS Licence Suspended

Prior to its termination, FTX Australia's AFS license allowed it to establish a marketplace for foreign currency contracts and derivatives for wholesale and retail clients headquartered in Australia. Through FTX Australia, traders from Australia who registered to sell digital assets were connected.

However, until December 19, FTX Australia is only authorized to offer a few financial services focused on terminating current derivative contracts with its clients. On November 11, John Mouawad, Scott Langdon, and Rahul Goyal of Sydney-based investment and consultancy company KordaMentha were chosen as voluntary managers to offer restructuring assistance to Australian FTX and its affiliate FTX Express. The suspension occurs as a consequence.

KordaMentha to Restore Cash

According to a November 14 article in the Australian Financial Review (AFR), KordaMentha will try to recover the cash of roughly 30,000 Australian investors and 132 Australian businesses as a result of the disastrous FTX aftermath.

The report also stated that staff members of Australian FTX have been working with KordaMentha's administrators to find a solution. A little over eight months after it was founded on March 20 and after setting up a representative office in Sydney for its five workers, Australian FTX has suspended its customer-facing activities.

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FTX Australia Licence Suspended, Leaving 30K Australians Stranded
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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