FTX filed a lawsuit on Wednesday against former managers of a Swiss business the bankrupt cryptocurrency exchange had acquired, looking to claw back at least $323 million to repay creditors and customers, WSJ Pro Bankruptcy reported. The lawsuit filed in the U.S. Bankruptcy Court in Wilmington, Del., alleged FTX overpaid for Digital Assets DA AG, the Swiss company that later became FTX Europe following a series of transactions in 2020 and 2021, despite knowing it “had limited business and no intellectual property beyond a business plan.” The new management overseeing FTX’s bankruptcy said in the lawsuit that the FTX Europe business has little value and is unlikely to be sold. The defendants are Digital’s co-founders and a Digital employee and shareholder before the FTX acquisition. FTX bought the Swiss company hoping to gain access to regulators to make it easier to do business and expand its customer base in Europe, FTX said in the lawsuit. In reality, the business didn’t have and never got the type of licenses that would have been useful to FTX in Europe, the lawsuit said.
