In efforts of the ongoing debt settlements, the now-bankrupt cryptocurrency exchange FTX has resolved a lawsuit by opting to sell its European branch, FTX Europe, for $32.7 million. The move follows FTX’s legal dispute seeking to reclaim $323 million spent on acquiring the European startup.
Details of the Settlement
FTX had sued Digital Assets DA AG’s founders, accusing them of a “massive overpayment” in the 2021 acquisition, utilizing FTX customer funds. FTX Europe, still in its infancy, was rebranded after the purchase. The settlement decision aligns with FTX’s assessment that finding another buyer for FTX Europe would be challenging.
Facing counterclaims from DA AG founders Patrick Gruhn and Robin Matzke, FTX deemed a settlement as the best solution. The litigation process would be prolonged and costly, with key witnesses like FTX founder Sam Bankman-Fried unavailable due to fraud convictions.
The agreed-upon sale of FTX Europe for $32.7 million aims to provide optimal outcomes for FTX creditors. FTX’s move underscores its strategic decision to cut losses and streamline operations, emphasizing the challenges posed by the failed international expansion in 2022.
In short …
FTX finalises the sale of FTX Europe. The $32.7 million deal signifies a pragmatic resolution, balancing legal considerations and financial implications. FTX’s ongoing efforts to address legal challenges underscore the evolving landscape of the crypto industry.
