Australia suspends FTX's financial services license

Quick Take

  • Australia’s securities regulator has suspended FTX’s financial services license.
  • FTX Australia can provide “limited” services until Dec. 19 related to terminating derivatives. 

The Australian Securities and Investments Commission has suspended FTX Australia's financial services license in the country until May 15, 2023.

"Until [December 19] 2022, FTX Australia can continue to provide limited financial services that relate to the termination of existing derivatives with clients," the securities regulator said in a statement.

"Prior to the suspension, FTX Australia’s license permitted it to deal in, make a market for and provide general advice relating to derivatives and foreign exchange contracts to retail and wholesale clients," the regulator said.

FTX and more than 100 affiliated entities filed for Chapter 11 bankruptcy protection in the U.S. on Nov. 11. KordaMentha's John Mouawad, Scott Langdon and Rahul Goyal were appointed voluntary administrators for FTX Australia that day, as well as a digital currency exchange known as FTX Express Pty Ltd. that the commission does not regulate.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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