- FTX was seeking to recover $323 million from the founders of FTX Europe, a cryptocurrency platform that the bankrupt exchange acquired in 2021.
- According to court documents, FTX claimed the exchange overpaid for the startup.
- The agreement means that FTX Europe’s founders will now buy back the company for $32.7 million.
FTX, the bankrupt cryptocurrency exchange that shocked the cryptocurrency world when it went bankrupt in 2022, has agreed to sell its European subsidiary to its original owners.
FTX dropped a lawsuit seeking to recover funds used to acquire the Europe-based cryptocurrency startup, then agreed to sell it back to its founder for $32.7 million.
The settlement is significantly less than the $323 million FTX spent on the 2021 deal.
FTX sells FTX Europe’s assets back to the founders.
FTX has reached a settlement with FTX Europe’s founders, according to documents filed Thursday in Bankruptcy Court in Wilmington, Delaware. FPreviously, before rebranding as Zurich Digital Assets DA AG, FTX Europe was the cryptocurrency exchange’s gateway to the European market.
Now, it’s part of FTX’s ongoing efforts, led by founder and former CEO Sam Bankman-Fried, to recoup funds allegedly incorrectly spent on trades, ostensibly. The disgraced Bankman-Fried remains in prison awaiting sentencing after a jury found him guilty on all charges, including fraud, last year.
The bankrupt cryptocurrency exchange noted in its settlement with FTX Europe that a deal to sell the company back to its founders was the best outcome for FTX creditors. The FTX team argued that its European-based subsidiary was unlikely to attract a bid.
The settlement ends a lengthy lawsuit, given that FTX Europe overpaid for the acquisition of Switzerland-based Digital Assets DA AG, but has also filed a counterclaim.
DA AG founders Patrick Gruhn and Robin Matzke deny FTX’s claims in the lawsuit and demand $256.6 million from the bankrupt exchange. Matzke told Reuters the agreement with FTX was a “good outcome.”