- FTX has agreed to sell its European division, FTX Europe, back to its original founders for $33 million after a legal dispute over its acquisition.
- FTX Europe was originally founded as a Swiss startup called Digital Assets AG before being acquired by FTX for $32 million in 2021, a deal allegedly financed with customer funds.
- The sale allows FTX Europe to resume independent operations under its founders while providing funds for FTX’s bankruptcy proceedings in the US as it winds down global operations.
FTX, the bankrupt crypto exchange, has settled a dispute regarding the fate of its European division. According to Reuters, he company has agreed to sell FTX Europe back to its original founders for $33 million.
FTX Europe’s Origins
FTX Europe was originally founded as a Swiss startup called Digital Assets AG. In 2021, it was acquired by FTX in a $32 million deal. The purchase was allegedly financed using FTX customer funds, leading to accusations of overpayment.
The Legal Dispute
After declaring bankruptcy, FTX attempted to recover the money spent on acquiring FTX Europe. FTX filed a lawsuit claiming the purchase was made with customer funds and overvalued. The founders denied wrongdoing and counter-sued FTX for $566 million. The dispute was resolved on February 21st.
With difficulties finding other buyers, FTX has agreed to sell FTX Europe back to its founders Patrick Gruhn and Robin Matzke for $33 million. This will return the European division to independent ownership.
FTX Europe’s Future
The sale ends months of uncertainty about FTX Europe’s fate. The company will now resume operations under its original founders. This will allow FTX to focus on its bankruptcy and creditor repayments in the US as it winds down global operations.
The dispute settlement enables FTX Europe to move forward independently. Meanwhile, the sale provides needed funds for FTX’s bankruptcy proceedings. The situation resolves uncertainties about FTX’s European presence as its global empire unravels.
