In a surprising turn of events, FTX has agreed to sell its European subsidiary back to the original owners for $33 million. This move comes after FTX sought to reclaim $323 million from the founders of FTX Europe, a crypto platform that was acquired by the now bankrupt exchange in 2021. Court documents revealed that FTX argued it had overpaid for the startup, leading to this settlement.
FTX Europe Sold Back to Founders for $32.7 Million
The agreement, documented in the bankruptcy court in Wilmington, Delaware, signals a shift in FTX’s strategy to recoup allegedly misused funds, following the bankruptcy and legal issues involving its founder and former CEO, Sam Bankman-Fried. By selling back FTX Europe to its original owners, now known as Zurich Digital Assets DA AG after rebranding, FTX aims to settle with creditors and move past costly legal disputes.
Despite the initial $323 million expense in acquiring the European subsidiary, FTX deemed this settlement as the most viable option, especially considering FTX Europe’s counter lawsuit. The founders of DA AG, Patrick Gruhn and Robin Matzke, who disapproved of FTX’s claims and initially demanded $256.6 million, have now embraced the settlement as a positive outcome.
Matzke expressed satisfaction with the resolution, stating to Reuters that the agreement with FTX “was a good result.”
FAQs
What led to FTX selling its European subsidiary back to the original owners?
FTX decided to sell its European subsidiary back to the original owners after seeking to reclaim $323 million from the founders of FTX Europe, citing an overpayment for the startup.
How much was FTX’s European subsidiary sold for?
FTX sold its European subsidiary back to the original owners for $33 million, following a settlement agreement to end legal disputes and financial claims.
Who are the founders of the European subsidiary?
The founders of the European subsidiary, now Zurich Digital Assets DA AG, are Patrick Gruhn and Robin Matzke, who reached a settlement with FTX to repurchase the company for $32.7 million.