FTX Ends Legal Battle With EU Founders, Sells EU Assets
- FTX has settled its lawsuit with its EU founders for $32.7 million and agreed to sell its assets in the EU market.
- FTX has also received approval to sell its stake in Anthropic, an AI startup valued at $15 billion.
FTX, the bankrupt crypto exchange, has reached a settlement with its EU founders, Patrick Gruhn and Robin Matzke, who were sued for over $323 million. The settlement also involves FTX selling its assets in the EU, where it failed to gain traction.
The lawsuit, filed in July 2023, claimed that FTXs founder, Sam Bankman-Fried, invested nearly $400 million in FTX Europe. It was formerly known as Digital Assets DA AG. Bankmans intentions were purely for personal gain, despite the companys poor performance and limited operations.
The lawsuit sought to recover over $323 million from Gruhn, Matzke, and their associates, Brandon Williams of Cosima Capital and Lorem Ipsum Holding UG, a German holding company owned by Matzke. However, the parties have agreed to a settlement that involves Gruhn and Matzke repurchasing FTX Europes assets for $32.7 million, according to a Wall Street Journal report.
The settlement also requires FTX to divest its assets in the EU, where it faced regulatory hurdles and low customer demand.
FTX to Sell Stake in AI Startup Anthropic
The settlement comes after FTX received approval to sell its stake in Anthropic, an AI startup that aims to create safe and aligned artificial intelligence. FTX and its affiliate Alameda invested $500 million in Anthropic in 2021, acquiring 7.84% of its shares. However, after FTXs bankruptcy, the stake became a valuable asset for the creditors, as Anthropics valuation rose to $15 billion.
FTX initially tried to sell its stake in Anthropic in June 2023, but the deal was delayed due to the scrutiny of the potential buyers. In February 2024, FTX filed a request to sell its stake was approved by the court. The sale of the stake is expected to generate significant proceeds for the FTX estate, which has expressed confidence in its ability to fully reimburse its clients.
The settlement and the sale of the stake mark the end of a long and complex legal saga for FTX, which was once one of the largest and most innovative crypto exchanges in the world. Meanwhile, the crypto industry continues to face challenges and opportunities, as new players and regulations emerge.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
