In a major blow to the cryptocurrency industry, the Australian Securities and Investments Commission (ASIC) has taken decisive action by canceling the financial license of FTX Australia Pty Ltd, a local subsidiary of the bankrupt crypto exchange.
The cancellation, announced on July 19, took effect on July 14, leaving the company with limited options until July 12 next year to conclude its dealings with clients.
The cancellation of FTX Australia’s Australian financial services (AFS) license by ASIC is a response to the company’s financial instability. The cancellation terms stipulate that it may provide limited financial services related to terminating existing derivatives with clients until July 12, 2024.
However, the cancellation will not affect its obligations to continue as a member of the Australian Financial Complaints Authority or its arrangements to compensate retail clients.
The troubles for the exchange began on November 11, 2022, when voluntary administrators were appointed for both FTX Australia and its subsidiary. ASIC, in response, suspended its AFS license initially until May 15, 2023, which was later extended to July 24, 2023.
Former FTX Executive Joins Sino Global Capital
In the aftermath of the exchange’s collapse, one notable former executive has resurfaced in the cryptocurrency space. Zhe “Constance” Wang, previously associated with the exchange as Chief Operating Officer and Co-Chief Executive Officer of FTX Digital Markets, has joined crypto venture capital firm Sino Global Capital, according to a report.
Matthew Graham, the founder of Sino Global Capital, confirmed that Wang is leading the gaming team at the firm. Her previous responsibilities at the exchange included overseeing token listings, global business expansion, and public relations.
Sino Global Capital had been an early investor in it and, back in 2022, launched a $200 million fund with the exchange as a key investor. Despite its subsequent collapse, no accusations of wrongdoing have been directed at Wang regarding the company’s failure.
Among other former FTX associates, Amy Wu, who previously worked at Lightspeed Venture Partners to lead FTX Ventures, recently joined Menlo Ventures. While Brett Harrison, former President of FTX US, founded a startup with plans to provide a “GPT-4-powered trading algorithm code generator.”
Nevertheless, FTX’s fate serves as a cautionary tale for crypto investors and stakeholders amid the industry’s ongoing evolution.
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