FTX to sell its European subsidiary

The cryptocurrency exchange FTX, which was in financial difficulty, reached an agreement to settle a dispute related to its European division. As a result, the company was returned to its previous owners.

According to a Reuters report, FTX agreed to sell FTX Europe to its founders for 32.7 million US dollars. This agreement suggests that the company had difficulty finding other interested buyers.

It is important to remember that FTX Europe was originally acquired in 2021 by Swiss startup Digital Assets AG (DAAG) in a deal that amounted to 323 million dollars.

Before accepting the sale, FTX attempted to recoup the funds it had invested in the acquisition. The exchange filed a lawsuit alleging that the purchase had been financed with client funds and arguing that the purchase price was a “massive overpricing”.

The founders of the startup, Patrick Gruhn and Robin Matzke, denied the allegations and counterattacked, requesting $256.6 million from FTX. According to Reuters, the dispute was finally resolved on February 21.

FTX Europe was also part of FTX’s presentation at Chapter 11 in the United States in November 2022. Several cryptocurrency exchanges showed interest in acquiring the European division after its bankruptcy, hoping to gain a share of the regional market that FTX had left.

K. Tovar

Source: iHold

(Reference image source: Kachanara, Unsplash)

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