FTX Bankruptcy Lawyers Claim $323M From FTX Europe Leadership: Report
Key Points:
- FTX bankruptcy lawyers are seeking $323 million in recovery from its European subsidiary.
- Sam Bankman-Fried and the FTX Group paid a total of approximately $323.5 million in exchange for the acquisition of Swiss Company DAAG, which would eventually be known as FTX Europe.
According to CoinDesk, FTX bankruptcy lawyers asked the court to recover $323.5 million from the management of FTX Europe in a filing on Wednesday.
According to court filings Wednesday, lawyers for crypto exchange FTX have asked the U.S. Bankruptcy Court in Delaware to order FTX Europe’s leader to recover more than $323.5 million.
Lawyers representing FTX Trading Ltd. and Maclaurin Investments Ltd., part of Alameda Research, the hedge fund arm of the bankrupt FTX empire, asked the court to order the return of the transfers to Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG, leader of FTX Europe.
Sam Bankman-Fried and the FTX Group paid roughly $323.5 million for the Swiss company DAAG; this business afterward changed its name to FTX Europe. FTX bankruptcy lawyers argued that the company had limited operations and had no intellectual property other than a “business plan.”
“FTX Insiders wanted the DAAG acquisition because they believed DAAG’s founders could provide access to European regulators that would allow FTX to obtain the necessary for activities in the European Economic Area, and because they believed to benefit Williams and Matzke, who had preexisting relationships with Bankman-Fried,” the filing said.
FTX bankruptcy lawyers claim that when FTX Europe management bought K-DNA, a company with an EEA operating license that was ultimately integrated with FTX, for about 2 million Euros, it generated excess profits of close to $100 million.
The lawyers are also asking the court to halt any remaining payments that have not been made to the management of FTX Europe. The documents said the transaction amounted to more than $376 million, of which $52.5 million was unfulfilled obligations.
The lawyers argued that FTX Europe lacked value and could not be sold. In April, a Swiss court approved FTX’s request to explore the sale of FTX Europe. In March, FTX Europe started allowing customers to withdraw their locked funds.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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FTX Bankruptcy Lawyers Claim $323M From FTX Europe Leadership: Report
Key Points:
- FTX bankruptcy lawyers are seeking $323 million in recovery from its European subsidiary.
- Sam Bankman-Fried and the FTX Group paid a total of approximately $323.5 million in exchange for the acquisition of Swiss Company DAAG, which would eventually be known as FTX Europe.
According to CoinDesk, FTX bankruptcy lawyers asked the court to recover $323.5 million from the management of FTX Europe in a filing on Wednesday.
According to court filings Wednesday, lawyers for crypto exchange FTX have asked the U.S. Bankruptcy Court in Delaware to order FTX Europe’s leader to recover more than $323.5 million.
Lawyers representing FTX Trading Ltd. and Maclaurin Investments Ltd., part of Alameda Research, the hedge fund arm of the bankrupt FTX empire, asked the court to order the return of the transfers to Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG, leader of FTX Europe.
Sam Bankman-Fried and the FTX Group paid roughly $323.5 million for the Swiss company DAAG; this business afterward changed its name to FTX Europe. FTX bankruptcy lawyers argued that the company had limited operations and had no intellectual property other than a “business plan.”
“FTX Insiders wanted the DAAG acquisition because they believed DAAG’s founders could provide access to European regulators that would allow FTX to obtain the necessary for activities in the European Economic Area, and because they believed to benefit Williams and Matzke, who had preexisting relationships with Bankman-Fried,” the filing said.
FTX bankruptcy lawyers claim that when FTX Europe management bought K-DNA, a company with an EEA operating license that was ultimately integrated with FTX, for about 2 million Euros, it generated excess profits of close to $100 million.
The lawyers are also asking the court to halt any remaining payments that have not been made to the management of FTX Europe. The documents said the transaction amounted to more than $376 million, of which $52.5 million was unfulfilled obligations.
The lawyers argued that FTX Europe lacked value and could not be sold. In April, a Swiss court approved FTX’s request to explore the sale of FTX Europe. In March, FTX Europe started allowing customers to withdraw their locked funds.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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