FTX Settles Lawsuit
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February 25, 2024 1:39 pm
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FTX has finally settled a lawsuit relating to its now-defunct European subsidy FTX Europe.
Originally purchased in 2021, the Zurich-based Digital Assets DA AG was originally bought by FTX to serve as the base for its European operations.
However, FTX has now been forced to sell back the company to the individuals who founded the company. The now-defunct crypto exchange has agreed to sell back Digital Assets DA AG for $32.7 million.
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The alternative would have been facing a $256.56 claim from the founders of Digital Assets DA AG against FTX, and the FTX estate claims that this was the best move for the salvaging of creditors’ funds. Multiple outlets confirmed this latest development:
FTX has settled a lawsuit that sought to claw back the $323M spent on acquiring the European startup “FTX Europe” by agreeing to sell it back to the founders for $32.7M. 🔎
— Moby Media (@mobymedia) February 23, 2024
The conclusion to the FTX Europe saga — FTX dropped its $300m+ lawsuit and agreed to sell back the unit's assets to the cofounders for around $30 million:https://t.co/tFEK3yPkY4
— Leo Schwartz (@leomschwartz) February 23, 2024
I previously wrote about the parties who explored buying FTX Europe, and why the lawsuit never quite added up:https://t.co/jBTPbHm3G3https://t.co/d4rV9ctyah
— Leo Schwartz (@leomschwartz) February 23, 2024
Coin Edition reports:
Matzke, one of the founders of Digital Assets DA AG, expressed contentment with the settlement. He highlighted the importance of facilitating speedy payouts to FTX’s EU clientele.
The settlement represents a pragmatic approach by FTX to address its financial obligations and streamline its operations amid bankruptcy proceedings.
Coinpedia writes: “Sale reflects pragmatic resolution, addressing legal and financial concerns amid FTX’s evolving crypto landscape.”
#FTX settles lawsuit by selling FTX Europe for $32.7 million, resolving legal dispute over acquisition.
Sale reflects pragmatic resolution, addressing legal and financial concerns amid FTX's evolving #crypto landscape.https://t.co/9o8NGFymfV
— Coinpedia (@CoinpediaNews) February 25, 2024
Coin Telegraph explained:
FTX Europe was part of FTX’s Chapter 11 filing in the United States in November 2022. A number of crypto exchanges sought to acquire the European division after its bankruptcy, hoping to grab a slice of FTX’s regional market share.
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