FTX Resolves Outstanding Debts by Offloading European Subsidiary for $32.7 Million

FTX, the cryptocurrency exchange that recently filed for bankruptcy, has reached a settlement in a lawsuit by selling its European branch, FTX Europe, for $32.7 million. The lawsuit was filed in an attempt to recover $323 million that was spent on acquiring the European startup.

FTX accused the founders of Digital Assets DA AG of overpaying for the acquisition and using FTX customer funds. After the purchase, FTX Europe was rebranded. The decision to sell FTX Europe was made because FTX believed it would be difficult to find another buyer.

FTX faced counterclaims from the founders of DA AG, Patrick Gruhn and Robin Matzke. To avoid a prolonged and costly litigation process, FTX decided that a settlement was the best option. Key witnesses, including FTX founder Sam Bankman-Fried, were unavailable due to fraud convictions.

The sale of FTX Europe for $32.7 million was agreed upon to benefit FTX creditors. This move demonstrates FTX’s strategic decision to minimize losses and streamline operations after facing challenges in its international expansion in 2022.

In summary, FTX has finalized the sale of FTX Europe for $32.7 million, which represents a practical resolution to the legal and financial issues at hand. FTX’s ongoing efforts to address legal challenges highlight the ever-changing landscape of the cryptocurrency industry.