FTX spent approximately $400 million to acquire Digital Assets DA AG (DAAG), which later became FTX Europe. The legal team of the FTX investors are now seeking reimbursement for the funds spent by former FTX CEO Sam Bankman-Fried and his associates, a report in Cointelegraph said.
The complaint, filed on July 12 in the United States bankruptcy court in Delaware, alleges that SBF acquired DAAG for $376 million through Alameda Research, despite the Swiss company having limited business operations and no intellectual property apart from a business plan. FTX’s objective was to gain access to European regulators by owning a local company.
The complaint further states that DAAG assisted FTX in obtaining a Cyprus operating license by acquiring a local company for 2 million euros ($2.2 million). Additionally, FTX continued to make significant payments to DAAG, which eventually became FTX Europe, for IT and consulting services.
The plaintiffs aim to recover a portion of the funds from the defendants, including the co-founders and former top executives of DAAG, who transitioned to FTX Europe. The complaint alleges that the transfers made during the DAAG deal were conducted with the intent to hinder, delay, or defraud present or future creditors.
As a result, the plaintiffs seek to recover the full amount of these transfers, along with interest, costs, and fees, for the benefit of the FTX bankruptcy estate. The plaintiffs are demanding a sum of “no less than $323,500,000,” in addition to any further avoidable transfers that may be discovered during their investigation.
