The bankrupt crypto exchange, FTX, has reached a settlement to drop a lawsuit against the original owners of FTX Europe. The lawsuit aimed at reclaiming over $323.5 million from the, the bankrupt cryptocurrency exchange’s European unit. Moreover, the institution agreed to sell its EU assets as the settlement proceeded.

FTX Dismisses Lawsuit Against EU Wing

The lawsuit, initiated in July 2023, targeted FTX Europe co-founders Patrick Gruhn and Robin Matzke. Moreover, it was aimed at Brandon Williams of Cosima Capital and Lorem Ipsum Holding UG, a German holding company owned by Matzke. The allegations noted in the lawsuit centered on FTX’s investment in FTX Europe, formerly known as Digital Assets DA AG, which was acquired for nearly $400 million across transactions in 2020 and 2021.

In addition, the organization accused its founder, Sam Bankman-Fried, of initiating the acquisition primarily for personal enrichment, despite the EU wing’s limited operational status at the time of purchase. Following FTX’s bankruptcy filing in November 2022, efforts to sell FTX Europe proved futile. This prompted the lawsuit to recoup purportedly misappropriated funds.

Under the terms of the settlement, Gruhn and Matzke have agreed to repurchase FTX Europe’s assets for $32.7 million, a fraction of the initial investment, according to a WSJ report. The proposed settlement’s approval would bring closure to a protracted legal dispute.

Also Read: FTX Gets Green Light to Offload $1 Billion Anthropic Investment

About The Anthropic Case

Court documents filed on Thursday reveal that FTX has received approval to sell its stake in the AI startup Anthropic. The request to sell approximately 7.84% of Anthropic’s shares owned by the bankrupt crypto exchange was initially submitted in early February 2024. An earlier attempt to offload the stake was initiated in June 2023 but was halted due to prolonged bidder scrutiny.

FTX and its affiliate Alameda injected $500 million into Anthropic back in 2021. With Anthropic’s valuation soaring to $15 billion, the stake’s worth is estimated to be around $1 billion. This significant increase in valuation underscores the attractiveness of Anthropic as an investment opportunity.

In January 2024, the FTX estate expressed confidence in its ability to fully reimburse its clients. Meanwhile, Sam Bankman-Fried is scheduled for sentencing next month following a conviction for fraud last year. Moreover, the duration of his prison term is anticipated to be a contentious issue in the upcoming proceedings.

Also Read: Will Do Kwon’s Attorney Succeed in Challenging Extradition?

The post FTX To Sell EU Assets After Dismissing $323 Mln Lawsuit Against Europe Wing appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am