February 25, 2024 - In a move potentially reflecting difficulty finding other buyers, bankrupt crypto exchange FTX has settled a dispute and sold its European arm back to its original founders for significantly less than the price paid for its acquisition.
According to a February 24th report by Reuters, FTX agreed to sell FTX Europe, formerly known as Swiss startup Digital Assets AG (DAAG), back to its founders Patrick Gruhn and Robin Matzke for $32.7 million. This comes after a public dispute between the two parties, with FTX attempting to recover the $323 million spent on the acquisition in 2021. The founders denied the allegations and counter-sued for $256.6 million. The dispute was ultimately resolved on February 21st, paving the way for the sale.
This development suggests potential difficulties for FTX in finding other buyers for its European arm. Notably, American crypto exchange Coinbase attempted to acquire FTX Europe on two occasions, both in November 2022 and September 2023. However, the negotiations ultimately fell through, leading to the sale back to the original founders at a fraction of the original acquisition price.
FTX Europe was part of FTX's Chapter 11 bankruptcy filing in the United States in November 2022. The sale back to the founders marks another step in the ongoing saga of the once prominent crypto exchange's downfall and its efforts to disentangle its assets.
