FTX Bankruptcy Lawyers file court motion for $323.5 million recovery from FTX Europe Management, CoinDesk reveals.
FTX Bankruptcy Lawyers File 323M Dollars Claim Against FTX Europe Leadership
In a recent court filing on Wednesday, FTX Bankruptcy Lawyers representing FTX Trading Ltd. and Maclaurin Investments Ltd., entities associated with Alameda Research, the hedge fund arm of the bankrupt FTX empire, have requested the U.S. Bankruptcy Court in Delaware to order the leader of FTX Europe, Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG, to recover over $323.5 million.
The legal representation argues that FTX Group, led by Sam Bankman-Fried, had paid approximately $323.5 million for DAAG, a Swiss company later rebranded as FTX Europe. According to the bankruptcy lawyers, FTX Europe had limited operations and lacked significant intellectual property aside from a business plan.
The court filing further alleges that FTX insiders pursued the acquisition of DAAG due to the founders’ purported access to European regulators, which was seen as vital for FTX to engage in activities within the European Economic Area. Additionally, the acquisition was seen as beneficial for Williams and Matzke, who already had established relationships with Bankman-Fried.
The lawyers representing FTX in the bankruptcy case assert that when FTX Europe management acquired K-DNA, a company with an operating license in the European Economic Area (EEA), for around 2 million Euros, it resulted in excess profits of nearly $100 million after its integration with FTX.
The legal team also seeks to halt any outstanding payments due to FTX Europe’s leadership. The court documents reveal that the total transaction amount reached more than $376 million, with $52.5 million remaining unpaid obligations.
FTX bankruptcy lawyers argue that FTX Europe lacks significant value and cannot be sold. In April, a Swiss court approved FTX’s request to explore the sale of FTX Europe. Furthermore, in March, FTX Europe commenced allowing customers to withdraw their locked funds.
The ongoing bankruptcy proceedings shed light on the complex financial and operational challenges faced by FTX and highlight the disputes surrounding the acquisition and subsequent management of FTX Europe.
Leave a comment