FTX is suing the founders of Digital Assets AG (DAAG), which it acquired for $400 million, seeking to recover $323.5 million for a “massive overpayment.”
In a strange turn of events, FTX has filed a lawsuit against its European arm. The lawsuit was filed on July 12 and alleges that FTX founder Sam Bankman-Fried and his partners used the money to enrich themselves rather than actually expand into Europe.
FTX is suing itself, hoping to recover $323.5 million
FTX made multiple investments in Europe before filing for bankruptcy. It acquired Digital Assets AG (DAAG), which is now FTX Europe. The acquisition was made for $400 million.
the filing It states that FTX executed a “significant overpayment” despite knowing it didn’t have much of a business plan.
Specifically, the lawsuit hopes to recover $323.5 million from Patrick Grun and Robin Matzke, co-founders of Digital Assets AG (DAAG). They continue to lead FTX Europe after the acquisition. It is also seeking to win back friends from Brandon Williams, a managing director at Cosima Capital, who was involved in the acquisition.
Finally, the lawsuit also includes Lorem Ipsum Holding UG, a German holding company owned by Matzke.
FTX Europe was founded after FTX conducted three transactions worth $400 million in 2020 and 2021. Digital Assets AG (DAAG) was headquartered in Zurich, Switzerland.
A Swiss court has also decided that FTX is free to explore selling FTX Europe. The court also appointed a director for FTX Europe AG. The latter was petition suspension procedures.
FTX hopes to relaunch its international exchange arm
There are still many developments related to FTX. Perhaps most importantly, the portal that allowed FTX bankruptcy victims to file claims has gone offline. It happened just an hour after it was launched.
The portal allowed users to access account information and submit claims. Social media users started complaining that they could not access the portal shortly after its launch.
It was also revealed that NFT legend Tom Brady lost $30 million when FTX went bankrupt. Brady promoted the stock exchange and received $30 million in stock.
Meanwhile, FTX is relaunching the international arm of the cryptocurrency exchange. The Wall Street Journal reports that FTX has “begun the process of getting interested parties to restart the FTX.com exchange,” quoting current CEO John Ray.
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