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FTX EU (Now Trek Labs) Paid €200K in Latest CySEC Settlement
- FTX EU, now Trek Labs Europe, settled with CySEC by paying €200,000 for possible violations of regulations that occurred before the ownership change.
- The settlement was based on compliance assessments between March 2022 and mid-November 2022 when the exchange collapsed.
- Possible violations related to organizational requirements, general principles, information provided to clients, and assessment of appropriateness.
- CySEC also settled with the operator of Purple Trading for €150,000.
- FTX EU's CIF license was suspended in November 2022 after its parent company's collapse.
- Backpack acquired FTX's Cypriot entity for $32.7 million, aiming to offer crypto derivatives in European markets.
- Although plans to operate under the acquired entity were delayed, other exchanges like Kraken, Coinbase, and Crypto.com have also acquired Cyprus-based brokers.
- The FTX-related entity's CIF license remains suspended, but the settlement indicates a potential lift of the suspension for Backpack.
- Backpack is in the process of distributing claims to affected FTX EU customers.
- FTX EU/Trek Labs Europe paid €200,000 for possible violations of regulations.
- CySEC settlement was based on compliance assessments from March 2022 to mid-November 2022, predating the ownership change.
- Violations related to organizational requirements, general principles, and information provided to clients.
- CySEC also settled with Purple Trading's operator for €150,000.
- FTX EU's CIF license was suspended in November 2022 post-parent company collapse; Backpack acquired FTX's Cyprus entity.
- Although ownership change occurred, CIF license remains suspended, pending potential lift after settlement.
- Backpack acquiring FTX Cyprus entity for $32.7 million to offer crypto derivatives in European markets.
- Plans for resumed operations under acquired entity delayed; other exchanges like Kraken, Coinbase, and Crypto.com also acquired Cyprus brokers.
- Backpack distributing claims to affected FTX EU customers in the process.
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