Defunct crypto exchange FTX has agreed to sell its European Union assets as proceeds from its settlement of a dismissed lawsuit against its EU wing. As per the proposed settlement agreement, the two key targets of the lawsuit were FTX Europe Co-founders Patrick Gruhn and Robin Matzke.
In July 2023, FTX filed a lawsuit against its EU subsidiary. However, the main targets of the lawsuit were Cosima Capital’s Brandon Williams and Lorem Ipsum Holding UG, a holding firm owned by Matzke.
The lawsuit comprised allegations about FTX’s investment in FTX Europe (which was formally called Digital Assets DA AG), which the exchange purchased for almost $400 million via transactions between 2020 and 2021.
When FTX filed for bankruptcy in 2022, the firm made several attempts to sell off the EU wing, but all proved futile. This led to the lawsuit reclaiming purportedly malapportioned funds. |
Furthermore, the filing alleged that Sam Bankman-Fried, FTX’s former owner and co-founder, made the purchase for personal gains, regardless of the EU subsidiary’s defunct state at the time of the purchase.
As per the settlement agreement, both Gruhn and Matzke will repurchase the defunct exchange’s EU assets at a fraction of its original investment, Wall Street Journal reports.
In similar developments, Sam Bankman-Fried (SBF), the bankrupt exchange’s former boss, has faced several legal pressures from US prosecutors and unsatisfied customers.
In November 2023, following a one-month 12-man jury hearing, SBF was found guilty of all seven charges raised against him and his involvement in the collapse of FTX.
The charges include securities fraud, wire fraud, commodities fraud, and money laundering fraud, among others. Bankman-Fried is scheduled to be sentenced on March 28, 2024.
A recent picture of him standing with his inmates was released earlier this week, showing how much weight SBF has lost since his incarceration.
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