FTX Settles a Lawsuit Over Failed European Expansion for $33 Million

Bankrupt crypto exchange FTX has settled a lawsuit that sought to claw back $323 million that it had spent acquiring a European startup, instead agreeing to sell the company back to its founders for $32.7 million.

FTX had concluded that no other buyer would agree to purchase its fledgling European subsidiary, FTX Europe, and that the proposed settlement is the best outcome for FTX creditors, according to documents filed Thursday in Wilmington, Delaware bankruptcy court.

FTX had sued the founders of Zurich, Switzerland-based Digital Assets DA AG, which FTX acquired and rebranded as FTX Europe in 2021, saying in a July 2023 lawsuit that the purchase price was a “massive overpayment” that was made using FTX customer funds. FTX Europe had little more than a business plan and was “not up and running yet” at the time of the acquisition, according to FTX’s complaint.

Read the source article at Nasdaq