FTX, the cryptocurrency exchange that declared bankruptcy in November 2022, has settled a dispute regarding its European division, paving the way for the return of the division to its original founders. This move indicates the complexities and challenges FTX faces as it navigates through its bankruptcy process.

The resolution involves FTX Europe being sold back to its founders for $32.7 million, a fraction of its original acquisition cost of $323 million in 2021 when it was known as Digital Assets AG (DAAG) and later rebranded as FTX Europe. This sale suggests difficulties in finding buyers willing to pay a premium for the division amid the ongoing turmoil in the crypto market and FTX’s bankruptcy proceedings.

The legal battle preceding this agreement saw FTX attempting to recoup the funds used for the purchase of FTX Europe, alleging that the acquisition was funded with customer funds and that the price paid was excessively high. The founders of the startup, Patrick Gruhn and Robin Matzke, contested these claims and sought $256.6 million from FTX. The dispute was ultimately settled on February 21, allowing for the sale to proceed.

This development is part of FTX’s broader strategy to liquidate assets and repay creditors following its collapse. FTX Europe’s return to its founders marks a significant step in FTX’s efforts to streamline its operations and focus on resolving its bankruptcy. The sale also highlights the ongoing interest in FTX’s assets, with various entities, including Coinbase, Trek Labs, and Crypto.com, having expressed interest in acquiring parts of FTX’s operations.

Furthermore, FTX’s plans to sell over $1 billion in shares of Anthropic, an artificial intelligence company, indicate the exchange’s commitment to raising funds to repay its debts. As FTX progresses through the final stages of its bankruptcy, these asset sales and legal settlements are crucial for the company to fulfill its obligations to creditors and potentially reshape its future in the cryptocurrency industry.