FTX agreed to sell its European subsidiary for $33 million

ChainCatcher news, according to a report by Reuters, the bankrupt cryptocurrency exchange FTX has reached a settlement in a lawsuit, agreeing to sell its European subsidiary back to its founders for $32.7 million. According to documents filed Thursday in the Delaware bankruptcy court in Wilmington, FTX believes that no other buyers would agree to acquire its newly established European subsidiary FTX Europe, and the proposed settlement is the best outcome for FTX creditors, indicating that it is difficult to find other buyers.

Before agreeing to the sale, FTX attempted to recover the funds used for the acquisition. The exchange filed a lawsuit claiming that the acquisition funds came from customer funds and argued that the acquisition price was a "massive overpayment." Startup founders Patrick Gruhn and Robin Matzke denied the allegation and demanded FTX pay $256.6 million. The dispute was ultimately resolved on February 21.

It is reported that FTX Europe was formerly the Swiss startup Digital Assets AG (DAAG), which was acquired for $323 million in 2021.