FTX Resolves Dispute Over European Division, Returns Ownership to Founders

Bankrupt cryptocurrency exchange FTX has resolved a dispute concerning its European arm, reverting ownership back to its original proprietors.

Reported by Reuters on 24th February, FTX consented to vend FTX Europe back to its founders for $32.7 million, indicating challenges in securing alternative buyers.

The Swiss startup Digital Assets AG, later rebranded as FTX Europe, was procured in a $323 million transaction in 2021.

Before agreeing to the sale, FTX endeavored to recuperate the expenditure incurred in the acquisition.

Alleging that the purchase was bankrolled with client funds and contending that the acquisition price was excessively high, the exchange lodged a lawsuit.

The founders of the startup, Patrick Gruhn and Robin Matzke, refuted the accusations and retaliated by demanding $256.6 million from FTX.

Reuters disclosed that the dispute was ultimately settled on 21st February.

FTX Europe was encompassed in FTX’s Chapter 11 filing in the United States in November 2022.

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Following its insolvency, several cryptocurrency exchanges endeavored to procure the European segment, aspiring to seize a portion of FTX’s local market.

For instance, the American cryptocurrency exchange Coinbase made two attempts to acquire FTX Europe: firstly in November 2022, subsequent to its parent company’s dramatic downfall, and then in September 2023.

Interest was also expressed by cryptocurrency firms Trek Labs and Crypto.com.

Operating in the region for merely eight months, FTX Europe launched a website for European clients to initiate withdrawals in March 2023, marking the first such action since declaring bankruptcy.

FTX is nearing the conclusion of its bankruptcy proceedings, intending to fully reimburse billions of dollars to its clients.

As part of its endeavours to recoup funds for creditors, the company was authorised on 22nd February to divest more than $1 billion in shares in the artificial intelligence company Anthropic.

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