Bankrupt cryptocurrency exchange FTX has asked a U.S. bankruptcy court to recover more than $323.5 million from FTX’s European management
.
The suit was filed on Wednesday, July 12, and alleges that FTX founder Sam Bankman-Fried and his partners used the funds for their own enrichment rather than to expand the company’s European operations.
FTX invested in the European market several times before declaring bankruptcy. The company acquired Digital Assets, which then became FTX Europe, for $400 million. The lawsuit says FTX made “large overpayments” despite knowing: it had no business plan.
Now FTX is hoping to recover $323.5 million from Patrick Gruhn and Robin Matzke, the founders of Digital Assets. Following the acquisition, they remained in charge of FTX Europe. Users will be able to access their account information and then apply.