FTX Europe Founders to Repurchase for $32.7 Million

FTX Europe, which SBF acquired for $323 million approximately three years ago, will be resold to its founders for $32.7 million.

A dispute regarding its European division has been resolved in the bankruptcy filing of FTX, which has returned the company to its former proprietors. 

As per a report by Reuters on February 24, FTX reached a settlement to sell FTX Europe to its founders for $32.7 million, indicating challenges in locating alternative purchasers. A $323 million acquisition of the Swiss startup Digital Assets AG (DAAG), subsequently renamed FTX Europe, occurred in 2021. 

Before finalizing the transaction, FTX tried to retrieve the capital invested in the acquisition. The exchange initiated the litigation, which claimed that customer funds were used to finance the acquisition and contested the acquisition price as a “massive overpayment.” 

Patrick Gruhn and Robin Matzke, the proprietors of the startup, refuted the accusations and renewed their assault by demanding $256.6 million from FTX. According to Reuters, the dispute was ultimately resolved on February 21. 

In November 2022, FTX Europe was included in its Chapter 11 petition in the United States. Several cryptocurrency exchanges attempted to acquire the European division of FTX following its bankruptcy to capture a portion of the company’s regional market share. 

For example, American cryptocurrency exchange Coinbase made two acquisition attempts for FTX Europe: in November 2022, after the significant scandal involving its parent company, and again in September 2023. Additionally, interest was reported from cryptocurrency firms Trek Labs and Crypto.com. 

The organization’s tenure in the area was limited to eight months. Since declaring bankruptcy, FTX Europe established a website in March 2023 where European customers could request withdrawals. 

While in the concluding phases of its bankruptcy proceedings, FTX intends to reimburse its customers in billions of dollars. In pursuit of recouping funds for its creditors, the organization obtained authorization on February 22 to divest over $1 billion worth of Anthropic shares, an artificial intelligence firm.