Crypto giant FTX opened two Malta-based companies last April

Cryptocurrency exchange giant FTX, which has filed for bankruptcy in the US, opened two companies in Malta last April in an apparent bid to expand into gaming.

According to information in the Malta Business Registry, FTX Malta Holdings Limited and FTX Malta Gaming Services Limited were opened in Malta in April.

Both companies have Sam Bankman-Fried, the crypto exchange’s former boss, written down as appointed director.

However, the two companies have been dormant since they were first set up in spring. The only documents available on the registry are the Articles of Association and directors’ declarations.

Reports suggest that these companies were set up with the intention of expanding into the gaming sector.

A spokesperson for the Malta Financial Services Authority told Times of Malta that neither of the two firms are licensed to carry out activities relating to cryptocurrencies or virtual financial assets, neither in or from Malta.

Nonetheless, the MFSA is monitoring the situation to understand the potential impact FTX’s bankruptcy could have on local license holders.

FTX is a cryptoexchange that allowed users to buy, sell and trade cryptocurrencies. It filed for bankruptcy last week after rumours spread that the company and other firms owned by Bankman-Fried were struggling financially.

These rumours prompted customers to withdraw funds from the exchange, leaving FTX scrambling to find funds to pay off creditors.

In its bankruptcy filing, FTX said it had between $10 billion and $50 billion in assets and liabilities, with over 100,000 creditors.