FTX Closes European Chapter, Sells Assets for a Fraction of Initial Investment

FTX Closes European Chapter, Sells Assets for a Fraction of Initial Investment

Feb 23 Tech Standard

The bankrupt cryptocurrency exchange FTX has settled a lawsuit with the original owners of its European unit, FTX Europe, for a mere $32.7 million. This represents a significant loss compared to the initial $400 million investment FTX made in acquiring the company.

The lawsuit, filed in July 2023, accused FTX founder Sam Bankman-Fried and others of inflating the value of FTX Europe and misappropriating funds. It aimed to reclaim over $323.5 million from the current owners. However, under the terms of the settlement, the owners will repurchase the assets for a fraction of the initial price.

This development marks the closure of a legal dispute that has been ongoing since FTX's bankruptcy filing in November 2022. It also allows FTX to focus on other matters, including the ongoing legal proceedings against Bankman-Fried and efforts to reimburse its clients.

Meanwhile, FTX also received court approval to sell its stake in the AI startup Anthropic. The stake, initially valued at $500 million, is now worth around $1 billion due to a significant increase in Anthropic's valuation. This sale provides FTX with much-needed liquidity as it navigates its bankruptcy proceedings.

Key Takeaways

  • FTX settles lawsuit with FTX Europe owners for $32.7 million, a significant loss from the initial investment.
  • The settlement allows FTX to close a legal dispute and focus on other matters.
  • FTX also receives approval to sell its stake in Anthropic for $1 billion, providing needed liquidity.


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