30K Aussies Left in the Lurch After FTX Australia’s License Got Suspended

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FTX Australia’s license suspension has left more than 30,000 Australians in the lurch. The exchange has been operating without a license since its launch in October 2020. It was suspended by the Australian Securities and Investments Commission (ASIC) on November 16.

The sudden suspension of FTX Australia’s license leaves its customers with few options for accessing cryptocurrency trading services. Customers affected by the suspension are now facing uncertainties about their funds and the security of their investments.

It is still being determined whether FTX will be able to regain its license status or be able to provide refunds to its customers. ASIC has stated that it is working with FTX as they seek to resolve this matter.

The suspension of FTX Australia’s license has come as a surprise to many in the cryptocurrency community. John Mouawad, Scott Langdon and Rahul Goyal of Sydney-based investment and advisory firm KordaMentha have been appointed as voluntary administrators to FTX Australia.

According to an Australian Financial Review (AFR) report, KordaMentha will attempt to recoup the funds of nearly 30,000 Australian investors and 132 Australian companies due to the catastrophic FTX fallout.

The report added that “FTX Australia employees have been cooperating with KordaMentha’s administrators to resolve the matter. FTX founder and former CEO Sam Bankman-Fried are listed as one of the three directors of FTX Australia.”

It is still unclear what the future holds for FTX Australia, but the administrators will be working to provide clarity for customers as soon as possible.

FTX Australia’s license suspension means it can no longer offer foreign exchange contracts to Australian-based clients. This could significantly impact the Australian economy, as FTX Australia had been one of the only exchanges providing these services.

The suspension of FTX Australia’s license also highlights the need for better regulation of cryptocurrency exchanges in Australia. ASIC has stated that it is working to improve regulation in this area, and it is hoped that this will help prevent situations like this from happening in the future.

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