FTX Settles Lawsuit for $33 Million Over Failed European Expansion

• FTX settled a lawsuit to recover funds spent on its ill-fated European expansion. 
• The settlement involved selling back the acquired European subsidiary for $32.7M.
• This move prioritizes payouts to FTX’s EU customers amid bankruptcy proceedings.

Bankrupt crypto exchange FTX has settled a lawsuit to recover funds spent on its ill-fated European expansion. The settlement, totaling $33 million, ended a legal battle that stemmed from FTX’s acquisition of a European startup for $323 million.

The lawsuit targeted the acquisition of Zurich-based Digital Assets DA AG, which FTX rebranded as FTX Europe in 2021. FTX had alleged that the purchase price was exorbitant and made using FTX customer funds. However, the founders of Digital Assets DA AG, Patrick Gruhn, and Robin Matzke, contested FTX’s claims and sought $256.6 million from FTX in return.

Following extensive legal wrangling, FTX determined that selling back the European subsidiary to its original founders for $32.7 million was the most viable option. Court documents filed in Wilmington, Delaware bankruptcy court revealed FTX’s rationale, citing t…

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