- The media received a report from BDO auditors on the deal to buy DAAG. The company was later renamed FTX Europe.
- During the inspection, BDO specialists did not find any problems. And the declared cost in the organization was considered fair.
- FTX Trading wants to cancel this agreement and recover from Bankman-Fried, as well as the former top management of the division, $ 323 million.
In 2022, the international audit company BDO conducted an audit of the transaction between the FTX Trading exchange and the Swiss company Digital Assets AG (DAAG), reports The Block. The organization said that there is nothing suspicious in the agreement, and the declared cost is more than fair.
The publication refers to the BDO report from April 2022. It was this company that audited the agreement and recognized the justified cost of $376 million.
Moreover, the organization noted that the deal was carried out by “knowledgeable, unrelated parties.” Such an assessment runs counter to the position of the new management of FTX Trading.
Recall, the exchange filed a lawsuit to recover $ 323 million from Sam Bankman-Fried and former members of the top management of the European division. This money were paid for DAAG in 2022, which was later renamed FTX Europe.
The company also insists on canceling the agreement, according to which it owes another $52.5 million. The exchange’s demand states that the cost of DAAG was overestimated during the assessment, and the deal itself is a “whim” of Sam Bankman-Fried and his entourage.
This is how FTX commented on the BDO report:
“This report assumes that the purchase price reflected fair value because it was independent. And, of course, one cannot claim the “transparency” of a fraudulent transaction only on the basis of the fact that it took place.
The company noted that, in fact, Sam Bankman-Fried and his associates promised to pay $376 million for a “regular business plan”, while the real cost of the enterprise is much lower.