CySEC Lifts Suspension on Trek Labs Europe, Formerly FTX EU

The Cyprus Securities and Exchange Commission (CySEC) has officially lifted the suspension on Trek Labs Europe Ltd‘s investment firm license, signaling a regulatory green light for the entity once known as FTX (EU) Ltd. The move comes after CySEC confirmed the company now meets all compliance requirements under Cyprus’s Investment Services and Activities and Regulated Markets Law of 2017.

From FTX (EU) to Trek Labs: A Story of Collapse and Comeback

Originally operating under the name FTX (EU) Ltd, the firm was part of Sam Bankman-Fried‘s ambitious expansion into Europe. In 2021, FTX acquired Cyprus-based K-DNA Financial Services Ltd, securing a CySEC-regulated CIF license to offer crypto derivatives and investment services across the EU. Cyprus was positioned as the exchange’s European gateway—until the collapse of FTX in November 2022 sent shockwaves across the global crypto industry.

Following the FTX bankruptcy, CySEC swiftly suspended the license of its EU arm, freezing the entity‘s operations as regulators worldwide investigated FTX’s failures and financial practices.

A New Owner and a New Name

In the aftermath, Backpack—a digital asset exchange operator based in the U.S. and Dubai—acquired the entity and rebranded it as Trek Labs Europe Ltd. The company stated its intent to rebuild on a clean slate, outlining plans to reintroduce regulated crypto derivatives to European markets under CySEC oversight.

The decision from CySEC to lift the suspension now clears the path for Backpack to activate its European expansion strategy. With the reinstated license, Trek Labs can legally operate as a Cyprus Investment Firm, offering services to clients across the European Economic Area.

What Comes Next?

The reinstatement also has implications for former users of FTX EU. Backpack previously announced plans to return assets to eligible clients who were affected by FTXs collapse, as part of its acquisition process. While details remain limited, the regulatory clarity may speed up these efforts.

CySECs move marks a rare reversal in the post-FTX fallout, as most entities connected to the defunct exchange faced shutdowns or drawn-out legal proceedings. It also sends a message that re-entry into regulated markets is possible—provided new owners demonstrate full compliance and oversight.

As the European regulatory landscape evolves, particularly with the upcoming implementation of MiCA, Trek Labs revival may serve as a test case for how legacy crypto platforms can be restructured under tighter rules.