FTX Europe Fails to Sell Its Unit, Demands $323 Million Compensation from Former Owners!

• FTX, the bankrupt cryptocurrency exchange, is seeking $323.5 million in compensation from the former owners of FTX Europe.
• FTX claims that the Swiss company Digital Assets AG (DAAG), which was acquired and transformed into FTX Europe in 2022, has no economic value and therefore cannot be sold.
• FTX alleges that the $323.5 million used to acquire DAAG should be refunded.

FTX, the bankrupt cryptocurrency exchange, is demanding $323.5 million in compensation from the former owners of FTX Europe, according to a hearing held on July 12 in the Delaware Bankruptcy Court. FTX argues that the Swiss company Digital Assets AG (DAAG), which was acquired and rebranded as FTX Europe in 2022, has no economic value and therefore cannot be sold. FTX claims that the $323.5 million used to acquire DAAG should be refunded.

FTX’s Claim for Compensation

FTX’s lawyers argue that DAAG is a small company with no intellectual property beyond its business plan. They claim that the acquisition of DAAG was carried out to obtain an operating license in Europe for FTX and to benefit the founders of DAAG, Brandon William and Robin Matzke.

Acquisition and Payment

According to the information provided, the Swiss company purchased the financial services company K-DNA in South Cyprus for $2.2 million to assist FTX Europe in obtaining a license. While FTX obtained the necessary license in Europe through this transaction, they also made a $100 million bonus payment to DAAG.

FTX’s Demands and Lawsuit

FTX holds the founders of DAAG and the managers of FTX Europe responsible for the compensation claim. The total value of the acquisition agreement is stated to be over $376 million, with $52.5 million yet to be paid. FTX is requesting the court to order the repayment of the $323.5 million and interest as compensation from Patrick Gruhn, Brandon William, Robin Matzke, and other defendants. FTX also seeks to halt the payment of the remaining $52.5 million. The Swiss Court has previously approved the investigation of this sale.

Last week, FTX filed a $700 million lawsuit against several defendants, including former US Secretary of State Hillary Clinton’s former deputy and investment firm K5 Global.