- Cryptocurrency exchange FTX has settled a dispute over its FTX Europe subsidiary.
- The founders agreed to buy it out for $32.7 million.
- That’s about 10 times less than the firm’s original purchase price in 2021.
The bankrupt crypto exchange FTX has settled a dispute over its European division. After a lengthy search for a buyer, it has agreed to sell FTX Europe to the former founders for $32.7 million, according to a Reuters report.
The exchange’s management reportedly acquired Swiss startup Digital Assets AG (DAAG) for $325.5 million in 2021, which was later renamed FTX Europe.
The source claims that before agreeing to the sale, FTX tried to recover the money spent on acquiring the startup. In a lawsuit, company representatives said the purchase was financed with FTX’s customers’ money and turned out to be a “major overpayment.”
The startup’s founders Patrick Gruen and Robin Matzke denied the allegations. They filed a counterclaim, demanding $256.6 million from FTX. Eventually, the parties came to a settlement.
FTX Europe was reportedly involved in a Chapter 11 bankruptcy filing in November 2022. Subsequently, some companies considered buying the exchange’s European division.
For example, Coinbase tried to do so twice – in November 2022 and in September 2023. Trek Labs and Crypto.com were also interested in the possibility of acquisition.
FTX Europe has only been in the region for eight months. In March 2023, it launched a website allowing European customers to request a withdrawal.
Meanwhile, the FTX exchange is in the final stages of bankruptcy proceedings. It has been authorized to sell more than $1 billion worth of shares in AI company Anthropic as part of its efforts to recover funds from creditors.
