{"id":35095,"date":"2023-07-13T09:16:05","date_gmt":"2023-07-13T13:16:05","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/lawyers-seek-323-5-million-recovery-from-ftx-europe-leadership\/"},"modified":"2023-07-13T09:16:06","modified_gmt":"2023-07-13T13:16:06","slug":"lawyers-seek-323-5-million-recovery-from-ftx-europe-leadership","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35095","title":{"rendered":"Lawyers Seek $323.5 Million Recovery from FTX Europe Leadership"},"content":{"rendered":"
\n

FTX<\/strong>\u00a0lawyers have filed a court motion seeking the recovery of $323.5 million from the leadership of\u00a0FTX Europe<\/strong>, which includes\u00a0Patrick Gruhn<\/strong>,\u00a0Robin Matzke<\/strong>,\u00a0Brandon Williams<\/strong>, and\u00a0Lorem Ipsum UG<\/strong>.\u00a0\u00a0<\/p>\n

According to\u00a0court filings submitted on Wednesday, the lawyers allege that the FTX Europe leadership improperly used funds from the crypto exchange to acquire Swiss company\u00a0DAAG<\/strong>\u00a0without conducting any due diligence.\u00a0<\/p>\n

The lawyers also claim that the leaders were aware that DAAG had limited business and no intellectual property beyond a business plan.<\/p>\n

FTX Group, led by Sam Bankman-Fried, paid approximately $323.5 million for the acquisition of DAAG, which was later rebranded as FTX Europe.\u00a0<\/p>\n

The motive behind the acquisition was to gain access to European regulators in order to obtain licenses for conducting activities in the European Economic Area.<\/p>\n

\u201cThe FTX Insiders pursued the DAAG acquisition because they believed DAAG\u2019s founders could provide access to European regulators that would allow FTX to obtain the necessary licenses for activities in the European Economic Area,\u201d the FTX lawyers said.<\/p>\n

FTX Europe Leadership Received Excessive Bonus Payments<\/h2>\n

The lawyers also claim that the FTX Europe leadership received excessive earn-out payments and bonuses amounting to approximately $100 million in connection with the acquisition of Cyprus-based investment firm\u00a0K-DNA<\/strong>.\u00a0<\/p>\n

This acquisition was completed for a mere 2 million euros.\u00a0<\/p>\n

The lawyers argue that the earn-out payments were unwarranted as K-DNA was already licensed to operate in the European Economic Area and was later absorbed into FTX Europe.<\/p>\n

Furthermore, the lawyers have requested the court to halt any further payments to the FTX Europe leadership.\u00a0<\/p>\n

According to the court filings, there is still an outstanding balance of $52.5 million.\u00a0<\/p>\n

However, the lawyers argued that FTX Europe lacks value as an asset and is not viable for sale.<\/p>\n

It is worth noting that last month, FTX debtors revealed that the exchange has made \u201csubstantial progress\u201d in securing assets,\u00a0recovering as much as $7 billion\u00a0in liquid assets so far<\/p>\n

The exchange owed customers approximately $8.7 billion when it went bankrupt last year.\u00a0<\/p>\n

More specifically, FTX had $6.4 billion in deficit, which was in the form of fiat currency and stablecoin that had been misappropriated.<\/p>\n

Meanwhile, the company has been seeking to retrieve every bit of money it can.<\/p>\n

For one, FTX has filed a complaint in Wilmington, Delaware, bankruptcy court,\u00a0asking back the $700 million\u00a0its founder\u00a0Sam Bankman-Fried<\/strong>\u00a0transferred to K5 entities in 2022.<\/p>\n

As per the latest development in the FTX saga, federal prosecutors in\u00a0Manhattan\u00a0<\/strong>are probing former executive\u00a0Ryan Salame<\/strong>\u00a0and his girlfriend\u00a0Michelle Bond<\/strong>, a former congressional candidate, for\u00a0potential violations of campaign-finance law.\u00a0<\/p>\n

The officials are investigating whether the couple unlawfully evaded federal limits on campaign contributions during Bond’s 2022 campaign for the Republican primary in New York\u2019s 1st congressional district, according to a\u00a0report\u00a0by the\u00a0Wall Street Journal<\/strong>.\u00a0<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

FTX\u00a0lawyers have filed a court motion seeking the recovery of $323.5 million from the leadership of\u00a0FTX Europe, which includes\u00a0Patrick Gruhn,\u00a0Robin Matzke,\u00a0Brandon Williams, and\u00a0Lorem Ipsum UG.\u00a0\u00a0 According to\u00a0court filings submitted on Wednesday, the lawyers allege that the FTX Europe leadership improperly used funds from the crypto exchange to acquire Swiss company\u00a0DAAG\u00a0without conducting any due diligence.\u00a0 The […]<\/p>\n","protected":false},"author":1,"featured_media":35096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-35095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nLawyers Seek $323.5 Million Recovery from FTX Europe Leadership | iFintechWorld<\/title>\n<meta name=\"description\" content=\"FTX\u00a0lawyers have 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