- Crypto exchange FTX has settled a dispute over its FTX Europe branch.
- The founders agreed to buy it out for $32.7 million.
- This is approximately 10 times less than the company's original purchase price in 2021.
Bankrupt crypto exchange FTX has settled a dispute over its European division. After a lengthy search for a buyer, it agreed to sell FTX Europe to its former founders for $32.7 million, according to a Reuters report.
According to available information, in 2021, the exchange management acquired the Swiss startup Digital Assets AG (DAAG) for $325.5 million. It was later renamed FTX Europe.
The source claims that before agreeing to the sale, FTX tried to return the funds spent on acquiring the startup. In the lawsuit, the company said the purchase was financed with funds from FTX customers and was a “massive overpayment.”
Startup founders Patrick Grün and Robin Matzke denied the accusations. They countersued, demanding $256.6 million from FTX.. As a result, the parties came to a settlement of the dispute.
FTX Europe was reportedly involved in filing for Chapter 11 bankruptcy in November 2022. Subsequently, some companies considered the option of purchasing the European division of the exchange.
For example, Coinbase tried to do this 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 clients to request withdrawals.
Meanwhile, the FTX exchange is in the final stages of bankruptcy proceedings. As part of efforts to recover money from creditors, it received permission to sell shares of AI company Anthropic for more than $1 billion.