FTX Europe Makes a Comeback to Original Owners

FTX has recently reached a resolution regarding its European sector by agreeing to a deal that sees the division sold back to its original founders. This agreement, as reported by Reuters, is priced at $32.7 million and a next step to finalizing the exchange’s bankruptcy proceedings. The transaction occurs nearly three years after Sam Bankman-Fried’s acquisition of the company for $323 million, showcasing a dramatic change in the company’s valuation and strategy.

The decision to sell FTX Europe to its founders, Patrick Gruhn and Robin Matzke, emerged amidst challenges in finding other parties interested in the purchase. Originally known as Digital Assets AG (DAAG) and later rebranded as FTX Europe, the company was part of FTX’s ambitious expansion before the exchange encountered financial difficulties.

FTX’s journey to this point included attempts to recoup the acquisition costs, leading to a lawsuit where the exchange claimed the purchase had been overly expensive and funded with customer money. Gruhn and Matzke responded with a counterclaim, seeking $256.6 million from FTX. This dispute was eventually settled on February 21, paving the way for the sale.

This move is part of FTX’s broader effort to address its financial obligations following its November 2022 Chapter 11 filing in the United States. As FTX seeks to liquidate assets and repay creditors, it has also received court approval to sell its investment in Anthropic, an artificial intelligence company, for over $1 billion.