Documents filed in Wilmington, Delaware bankruptcy court reveal that FTX determined no viable buyers existed for its European subsidiary, FTX Europe. The settlement, deemed the optimal outcome for FTX creditors, brings an end to a dispute over alleged misuse of FTX customer funds in the acquisition.

FTX had initially sued the founders of Digital Assets DA AG, based in Zurich, Switzerland, now FTX Europe, citing a substantial overpayment for a company that was not fully operational at the time of purchase. The defendants, including DA AG founders Patrick Gruhn and Robin Matzke, denied these claims and counter-sued FTX for $256.6 million.

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FTX cited the high costs and time investment of litigating these claims, particularly as key witnesses like FTX founder Sam Bankman-Fried faced legal issues, as reasons for pursuing the settlement. Matzke expressed satisfaction with the resolution, emphasizing support for prompt payouts to EU clients amidst FTX’s troubled international expansion.

In addition to this settlement, FTX has pursued legal action against various entities, including a former FTX lawyer, founders of Embed stock trading platform, bankrupt crypto firms, and investment firm K5, known for its political and celebrity ties.

The post FTX Settles for $33M Over Failed Europe Expansion appeared first on Coin Engineer.

Late last night, FTX made a significant move by filing a lawsuit against the employees of Salameda, which FTX alleges is under the control of its former CEO, Sam Bankman-Fried, aiming to recover their funds. FTX sued former employees for a substantial $157 million.

The lawsuit asserts that individuals including Michael Burgess, Matthew Burgess, Lesley Burgess, Kevin Nguyen, and Darren Wong, who have accounts registered on FTX.com and FTX US, exerted control over several companies and fraudulently withdrew assets on the days when FTX declared bankruptcy.

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According to the Court file, “As of August 31, 2023, it pointed out that these assets collectively held a value of approximately $157.3 million.”

The Court file states, “Defendant Michael Burgess orchestrated each of these transfers from one of the FTX US foreign exchange accounts to other exchanges, presenting them as if the account were under his ownership, with the intention of obstructing, delaying, or defrauding the current or future creditors of FTX US.”

It was determined that Burgess engaged in illicitly selling cryptocurrencies from numerous FTX accounts and transferring this money, which did not rightfully belong to him, to other exchanges. Furthermore, the investigation established that other defendant FTX managers unlawfully moved assets, not rightfully theirs, to other exchanges after FTX announced bankruptcy.

Authorities who researched the complaints they received realized this situation and sued the Salameda managers who committed such irregularities. In this lawsuit, the authorities said they were working to recover these stolen funds.

The post FTX Sued Former Employees for $157 Million! appeared first on Coin Engineer.

According to the report, Coinbase is exploring ways to expand its cryptocurrency derivatives offerings. It plans to do this by acquiring FTX Europe. The report also indicates that the negotiations never reached “a late stage”.

Fortune stated that despite Coinbase “no longer pursuing the potential deal”, the US-based exchange continued to show interest in a purchase transaction this month.

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Coinbase Derivatives Part

Crypto derivatives constitute a significant portion of the overall trade of digital currencies. JMP analysts suggested that considering the derivatives market constitutes a large part of trading activity, Coinbase’s expansion towards derivative products will contribute positively in the long term.

According to Fortune, tens of thousands of users were being added to FTX Europe before the company’s bankruptcy. This could represent a positive development for the future of the crypto industry.

The post Coinbase Considering Purchasing FTX Europe! appeared first on Coin Engineer.