FTX, a bankrupt crypto exchange, has reached a settlement with the founders of FTX Europe, a crypto platform it acquired in 2021. The exchange had originally sought to recover $323 million from the founders, arguing that it had overpaid for the startup. However, after dropping the case, FTX has agreed to sell the assets of FTX Europe back to its original owners for $32.7 million, a significantly lower amount.
The settlement, which was filed in a bankruptcy court in Delaware, marks FTX’s ongoing efforts to recover money allegedly misspent on deals by its founder and former CEO, Sam Bankman-Fried. Bankman-Fried is currently in jail awaiting sentencing after being found guilty on all charges, including fraud, last year.
FTX Europe, previously known as Zurich Digital Assets DA AG, was the exchange’s entry into the European market. The decision to sell it back to its founders was deemed the best outcome for FTX’s creditors, as the subsidiary was unlikely to attract any other bids. This also puts an end to any potential lengthy litigation, as FTX Europe had filed a counter lawsuit against FTX.
The founders of DA AG, Patrick Gruhn and Robin Matzke, had denied the allegations made by FTX and had even sought $256.6 million from the bankrupt exchange. However, Matzke has stated that the settlement with FTX is a good result.
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