FTX agrees to sell FTX Europe back to its founders for $32.7 million

Bankrupt cryptocurrency exchange FTX has settled a lawsuit in which it sought to recoup the $323 million it spent to acquire a European startup. FTX says it overpaid for a startup that “couldn’t get up and running” and that the founders of FTX Europe will buy back their company for $32.7 million. It is reported that Digital Assets DA AG was acquired by FTX in 2021 and renamed FTX Europe. FTX stated in the lawsuit in July 2023 that the acquisition transaction was a "huge overpayment" paid using FTX customer funds. FTX said no other buyer would agree to purchase its startup European subsidiary FTX Europe and that the proposed settlement is best for FTX creditors, according to documents filed Thursday in bankruptcy court in Wilmington, Del. result. (Reuters) According to news in July 2023, FTX Trading recently sued insiders of FTX’s European unit, claiming that the acquisition price paid for it by former CEO SBF was obviously too high. FTX's $376 million acquisition of Swiss startup Digital Assets AG (DAAG) "reasonably represents fair value" and is not inappropriate, accounting firm BDO said. DAAG later changed its name to FTX Europe.