- FTX lawyers seek to recover $323.5 million spent on the acquisition of FTX Europe.
- The lawyers argue that FTX Europe lacks value as an asset and cannot be sold for fund recovery.
FTX, the cryptocurrency exchange facing bankruptcy proceedings, has made a significant move in its attempt to recover funds for its creditors. The legal team representing FTX has approached the US Bankruptcy Court of Delaware, requesting the recovery of $323.5 million that was spent on the acquisition of FTX Europe, the entity now known under that name.
Coinbase is now worth ~$21 billion, despite being unprofitable.
We believe FTX creditors can very likely be made more than whole through FTX 2.0 and a Recovery/Equity Token.
The money is there. You just have to grab it.
— FTX 2.0 Coalition (@AFTXcreditor) July 11, 2023
The request by FTX’s lawyers highlights the lack of value that FTX Europe holds as an asset, making it difficult to sell and recover funds. The acquisition of FTX Europe by FTX Group involved a payment of $323.5 million, but the lawyers argue that the entity has limited operations and no significant intellectual property beyond a basic business plan.
To address this issue, FTX’s legal team has targeted the management and leadership of FTX Europe, including individuals such as Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG. By seeking to claw back the funds from those involved in FTX Europe, FTX hopes to secure a potential payback for its creditors.
The outcome of these proceedings is closely watched by FTX’s creditors, who are eager to see the recovery of funds lost in the exchange’s implosion. FTX’s native token, FTT, has experienced 7% gains over the past week, trading at $1.63. The potential recovery of FTX user funds through the clawback efforts could have a positive impact on the long-term price performance of FTT.
As the legal battle unfolds and the bankruptcy court assesses the merits of the clawback request, FTX and its legal representatives are actively working to protect the interests of creditors and maximize the recovery of funds. The outcome of these efforts will shape the future of FTX and the fate of its stakeholders in the cryptocurrency community.
