The Cyprus Securities and Exchange Commission (CySEC) today announced that a settlement has been reached with Cyprus investment firm Trek Labs Europe Ltd (ex. FTX EU Ltd).

The settlement concerns possible violations of Investment Services and Activities and Regulated Markets Law of 2017, as amended (the «Law»).

More specifically, CySEC’s investigation involved assessing the Company’s compliance, which during the period from 3.2022 to 12.11.2022 (i.e. before the change of name and shareholding structure), may have acted in violation of the:

• Section 22(1) of the Law, as to the authorisation condition laid down in section 17, subsections (5)(b) and (9), of the Law, regarding the organizational requirements with which a CIF is required to comply,
• Section 25(1) of the Law, regarding general principles and information to clients
• Section 26(3)(a) of the Law, regarding the assessment of appropriateness.

The settlement reached with the company is for the amount of €200,000. The Company has paid the full amount.

In November 2022, CySEC announced the suspension of the CIF license of FTX EU. Since then, the suspension has been extended several times.