FTX has Decided to Sell European Operations for $33M

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In a recent development, bankrupt cryptocurrency exchange FTX has settled a protracted dispute surrounding its European division, marking a significant step in the company’s tumultuous journey. 

According to a report by Reuters on February 24, the exchange has agreed to sell FTX Europe back to its original founders for $32.7 million, indicating challenges in securing alternative buyers for the subsidiary. The Swiss startup Digital Assets AG (DAAG), later rebranded as FTX Europe, was initially acquired in 2021 in a notable $323 million deal.

FTX Seeks to Recoup Funds

Facing financial turbulence, FTX sought to recoup the substantial funds it had invested in the acquisition. The exchange initiated legal action, claiming that the purchase had been financed using customer funds and contending that the acquisition price represented a “massive overpayment.” 

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The founders of the startup, Patrick Gruhn and Robin Matzke, vehemently denied the firm’s allegations and launched a counterattack, demanding $256.6 million from the embattled exchange. The dispute, marked by accusations and counterclaims, reached a resolution on February 21, according to Reuters.

Selling at a Loss

The decision to sell FTX Europe back to its original owners for a considerably reduced amount, $32.7 million, suggests that the exchange faced challenges in finding alternative buyers willing to match the initial acquisition cost. The settlement underscores the financial strain and complexities involved in the exchange’s attempts to navigate through bankruptcy while addressing legal issues.

The cryptocurrency community has been closely monitoring the firm’s struggles, and this resolution may provide some clarity on the fate of its assets and its ongoing legal battles. The sale of FTX Europe could be a strategic move for FTX, allowing the exchange to streamline its operations and focus on its core business amidst the turbulent cryptocurrency market.

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The resolution of the FTX Europe dispute represents a crucial chapter in the ongoing saga of the troubled exchange, as it seeks to navigate the complexities of bankruptcy and legal disputes in the ever-changing landscape of the digital asset market.

FTX Continues to Sells Assets

As reported earlier by TheCoinRise, FTX has decided to sell Digital Custody Inc. (DCI), a subsidiary that the firm acquired for $10 million between 2021 and 2022, for just $500,000

Additionally, the bankrupt exchange also offloaded over $1 billion worth of its shares in Anthropic, an artificial intelligence enterprise. Notably, the bankrupt firm had purchased around 7.84% of the valuable AI startup.

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