FTX Settles Lawsuit

February 25, 2024 1:39 pm Comments

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.

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:

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.”

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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