FTX Europe Sold Back to Founders for $32.7 Million

FTX Europe, initially acquired for $323 million by Sam Bankman-Fried, is being sold back to its founders for $32.7 million after FTX’s bankruptcy.

Sam Bankman-Fried acquired FTX Europe for $323 million almost three years ago, and now the founders will get $32.7 million when the company is sold back to them.

The European section of the bankrupt cryptocurrency exchange FTX has been returned to its original owners as part of a settlement over a dispute.

There may have been trouble finding other purchasers for FTX Europe, because the company reportedly agreed to sell it back to its founders for $32.7 million on February 24. In 2021, a $323 million deal was struck to acquire the Swiss firm Digital Assets AG (DAAG), subsequently known as FTX Europe.

First, FTX tried to get their money back from the acquisition before they accepted the sale. In its lawsuit, the exchange claimed that client funds were used to finance the acquisition and that the acquisition price was a “massive overpayment.”

Startup co-founders Patrick Gruhn and Robin Matzke hit back, demanding $256.6 million from FTX, and refuted the accusations. On February 21, the matter was reportedly settled, according to Reuters.

In November 2022, FTX Europe was a part of FTX’s Chapter 11 petition in the US. Following its bankruptcy, several cryptocurrency exchanges made moves to acquire FTX’s European branch in an effort to increase their own market dominance in that region.

In November 2022, after its parent company’s disastrous performance, American cryptocurrency exchange Coinbase tried to acquire FTX Europe twice; in September 2023, it made a second effort. Trek Labs and Crypto.com, two cryptocurrency companies, reportedly showed interest as well.

For a brief eight months, the business was active in the area. For the first time since bankruptcy, FTX Europe’s European customers were able to use a withdrawal request online in March 2023.

FTX intends to refund its consumers in full the billions of dollars they owe as it nears the end of its bankruptcy procedure. On February 22, the corporation was authorized to sell nearly $1 billion worth of shares in Anthropic, an artificial intelligence firm, as part of its endeavors to recoup monies owed to creditors.