FTX lawyers to claw back $323.5 million spent on FTX Europe acquisition, fueling hope of payback for creditors
- FTX lawyers have asked the US Bankruptcy Court of Delaware to allow recovery of $323.5 million spent on Europe entity acquisition.
- FTX Group previously paid this sum to acquire the Swiss company DAAG, which is now known as FTX Europe.
- Lawyers claim that the FTX Europe entity lacks value as an asset and is unable to be sold for fund recovery.
FTX lawyers are actively working on recovering funds of the exchange. The team requested US bankruptcy judge to help them recover $323.5 million spent on the acquisition of a Europe entity that was later recognized as FTX Europe.
FTX’s creditors are closely following the developments in bankruptcy court, awaiting recovery of funds lost to the exchange’s implosion.
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FTX lawyers ask bankruptcy court to order recovery of funds spent on DAAG acquisition
In a recent development in the bankruptcy proceedings of Sameul Bankman-Fried’s exchange, lawyers have asked the US Bankruptcy Court in Delaware to order FTX Europe leadership to recover upwards of $323.5 million and asked the court to stop any remaining payments.
According to bankruptcy proceedings, $52.5 million is remaining in payment towards acquisition of the entity known as FTX Europe. FTX acquired Swiss company DAAG, however lawyers claim that this business has limited operations and no intellectual property other than a “business plan.”
The team of lawyers that represents FTX Trading Ltd. and Maclaurin Investments Ltd. (owned by Alameda Research, Samuel Bankman-Fried’s trading firm) thus attempted to claw back funds from FTX Europe’s management and leadership- Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG.
FTT, the native token of the FTX exchange is currently trading at $1.63, yielding 7% gains for holders over the past week. Recovery of FTX user funds could push the token’s price higher in the long term.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
