Short: FTX spent $400 million to acquire its European subsidiary
The aim of an overpriced takeover of the Swiss company was to obtain a proper European license.
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According to the legal team of investors at FTX, trying to return their funds through legal process, a failed crypto exchange spent "nearly $400 million" to acquire Digital Assets DA AG ("DAAG"). Later, the Swiss company became known as FTX Europe. Now the plaintiffs are eager to be reimbursed for the money spent by Sam Bankman-Fried and his associates.
The lawsuit for cancellation and recovery of transfers was filed in the United States Bankruptcy Court for the District of Delaware on July 12. Plaintiffs say SBF acquired DAAG through Alameda Research for $376 million, even though the Swiss company had limited business and no intellectual property "outside of the business plan." The goal of FTX executives was to gain access to European regulators by owning a local business.
Ultimately, as the complaint says, DAAG did indeed help FTX obtain a license to operate in Cyprus by buying out the local company for 2 million euros ($2.2 million). Additionally, FTX continued to pay DAAG, now FTX Europe, millions of dollars for "IT and consulting services".
Related: US authorities are investigating a former FTX executive for potential campaign finance violations
The plaintiffs intend to recover at least a portion of the funds from the defendants - the co-founders and former senior executives of DAAG became FTX Europe. On a number of counts, the complaint finds that each of the transfers under a DAAG agreement were made "with the intent to obstruct, retard or defraud present or future creditors." Accordingly, plaintiffs may recover the full amount of such transfers plus interest, costs and fees to the extent available, for the benefit of FTX's bankruptcy estate.
The sum, openly demanded by the plaintiffs, is "not less than $323,500,000", plus the value of any additional avoidable transfer than the Plai...
The aim of an overpriced takeover of the Swiss company was to obtain a proper European license.
News
Join us on social networks
According to the legal team of investors at FTX, trying to return their funds through legal process, a failed crypto exchange spent "nearly $400 million" to acquire Digital Assets DA AG ("DAAG"). Later, the Swiss company became known as FTX Europe. Now the plaintiffs are eager to be reimbursed for the money spent by Sam Bankman-Fried and his associates.
The lawsuit for cancellation and recovery of transfers was filed in the United States Bankruptcy Court for the District of Delaware on July 12. Plaintiffs say SBF acquired DAAG through Alameda Research for $376 million, even though the Swiss company had limited business and no intellectual property "outside of the business plan." The goal of FTX executives was to gain access to European regulators by owning a local business.
Ultimately, as the complaint says, DAAG did indeed help FTX obtain a license to operate in Cyprus by buying out the local company for 2 million euros ($2.2 million). Additionally, FTX continued to pay DAAG, now FTX Europe, millions of dollars for "IT and consulting services".
Related: US authorities are investigating a former FTX executive for potential campaign finance violations
The plaintiffs intend to recover at least a portion of the funds from the defendants - the co-founders and former senior executives of DAAG became FTX Europe. On a number of counts, the complaint finds that each of the transfers under a DAAG agreement were made "with the intent to obstruct, retard or defraud present or future creditors." Accordingly, plaintiffs may recover the full amount of such transfers plus interest, costs and fees to the extent available, for the benefit of FTX's bankruptcy estate.
The sum, openly demanded by the plaintiffs, is "not less than $323,500,000", plus the value of any additional avoidable transfer than the Plai...
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