FTX Europe and German Catholic Media

Author(s): Scott Douglas Jacobsen

Publication (Outlet/Website): The Good Men Project

Publication Date (yyyy/mm/dd): 2025/02/07 (Unpublished)

Patrick Gruhn, former head of FTX Europe and founder of Perpetuals.com, is a legal and tech expert expanding into faith-based media. He repurchased FTX Europe and later sold it to Backpack Exchange. Gruhn, who also leads a German Catholic TV network, aims to bring fairness to crypto trading. He advocates for regulatory oversight and safer financial products. His latest venture, Perpetuals.com, focuses on self-clearing, regulated perpetual futures. Gruhn emphasizes strategic management across industries, comparing media and crypto operations. Passionate about fair trading and long-term business sustainability, he continues to innovate in finance, technology, and media.

Scott Douglas Jacobsen: So today, we’re here with Patrick Gruhn. He is a legal and tech expert, the former head of FTX Europe, and the founder of Perpetuals.com. He co-founded Digital Assets AG (DAAG), which FTX later acquired. Following FTX’s collapse, Gruhn repurchased FTX Europe and sold it to Backpack Exchange.

He now leads a German Catholic TV network expanding beyond crypto, merging technology with faith-based media. His expertise spans digital assets, fintech, and media leadership. Recently featured in Nasdaq, NTV News, and CoinTelegraph, Gruhn remains an influential figure in finance and media. He also made headlines for purchasing a Titanic gold pocket watch for nearly $1,500,000.

What inspired you to buy the Titanic gold watch?

Patrick Gruhn: That was a gift for my wife because it is hard to find something she truly loves. She is not usually a big fan of gifts. For example, we don’t typically exchange Christmas or birthday gifts. Instead, we donate to charitable causes.

However, I wanted to find something truly special as a thank-you to my wife after everything she has been through with me. We left Germany together. We met in Germany and later moved to Switzerland for five years, which was already a challenge.

Culturally, Switzerland is quite different from Germany. At the time, we had little children—one was two and a half years old, and the other was a newborn. Then, we moved to Canada for six months while waiting for our U.S. visa. Finally, we immigrated to the U.S. It was difficult, especially with small children. We now have four children in total.

I wanted to find something meaningful to her, and she has always been fascinated by the Titanic. Additionally, when we became a couple, I was 16 years old. We met in high school in Germany, and around that time, Titanic was released in cinemas. So, the Titanic holds historical significance for her and personal significance for us as a couple.

Even beyond the movie, she is deeply interested in the Titanic’s historical facts. Now, we live in Oregon, where the Astor family, who owned this watch, played a key role in founding Astoria—the oldest town in Oregon, originally known as Fort Astoria.

These connections made the watch incredibly special for us—perhaps not for anyone else, but certainly for us. That was the reasoning behind purchasing it as a gift for my wife.

Jacobsen: What motivated your transition from FTX Europe to running a Catholic TV network in Germany?

Gruhn: I have owned the Catholic TV network since February 2011. It is a nonprofit organization that I acquired in February 2011, and it was struggling at the time.

Interestingly, running a Catholic TV network is similar to managing derivatives and the crypto space.

First, the network broadcasts in multiple countries—Germany, Austria, Switzerland, and Liechtenstein—which requires a cross-border broadcasting license.

Second, since it operates subsidiaries in multiple countries as a nonprofit organization, it involves complex international tax regulations and nonprofit tax law.

Finally, from a technical standpoint, modern television broadcasting is entirely digital, much like financial technology.

Gruhn: So, for live broadcasts, for example, you usually have UDP streams or something similar. The point is that it’s similar to high-frequency trading. You have to process data in real time with low latency. So, even from an IT perspective, operating live broadcasts is similar to running matching engines or high-frequency trading market-making algorithms. It has a lot of similarities, including the legal aspects, such as intellectual property rights.

Most crypto assets are considered intellectual property because they are intangible but real. The same applies to movies, background music, and other forms of digital content, where intellectual property is a key factor. In many ways, the structure of managing digital media and crypto trading shares common legal and operational challenges.

I had been helping this TV network for several years before I acquired it in February 2011. At that time, the organization struggled with the complexity of operations, which was overwhelming. I stepped in and cleaned everything up, and now it runs quite successfully.

I have a good team. My employees and co-managing director largely manage day-to-day operations. My role is more on the strategic management side. But, yes, I have owned the network since February 2011 and have been involved with it since February 2006.

I started working with them in February 2006, helping with live streaming and technical solutions. That’s how I got in touch with them. I acquired the network when they faced a financial and operational crisis and needed help.

Jacobsen: How do you see Perpetuals.com shaping the future of digital asset trading?

Gruhn: After the FTX disaster, I realized one major thing was missing. As FTX Europe, we were fortunate to have been largely unaffected by the core issues because we had our own segregated IT infrastructure in Europe. We also had segregated funds, meaning we never transferred customer funds to the U.S. or the Bahamas. However, we did use the Bahamian exchange for trade execution. That’s where the crypto assets were sent, and that’s where the matching happened.

That dependency on the Bahamas exchange ultimately trapped us in the FTX bankruptcy process. That is precisely why we have now built Perpetuals.com as a fully independent exchange.

This time, we have a full exchange license in Europe under the Multilateral Trading Facility (MTF) framework. This means we can operate our exchange with self-custody and self-clearing mechanisms. We now have our own clearing house, offering 24/7 clearing without relying on third parties, and we are fully regulated.

Under the MiFID II framework, regulated trading venues in Europe must comply with strict operational and IT requirements. We also undergo detailed IT audits and comply with a new IT regulation in Europe called DORA (Digital Operational Resilience Act), which significantly enhances investor protection and security.

After witnessing what happened with FTX, it became clear that regulatory oversight was severely lacking. No one expected such a collapse, but regulators allowed things to spiral out of control. Even today, many crypto exchanges operate their derivatives platforms in Singapore, where there is no meaningful regulatory oversight because crypto derivatives are practically exempt.

Of course, this lack of oversight is appealing from a business perspective—companies save costs on compliance and other regulatory obligations. However, it exposes customers to significant risks. That’s why we built Perpetuals.com differently, ensuring full compliance, transparency, and security under European financial regulations.

But this is what makes it possible. Sometimes, I’m convinced of this, and sometimes I’m not. I’m not always a big fan of regulation—especially as a lawyer and someone working in crypto. Nevertheless, sometimes you need rules to protect people from themselves.

With Sam Bankman-Fried, it was simply too easy for him. If there had been more stringent oversight, a four-eye principle, and the same regulatory checks in exchanges like ours, what happened with FTX would not have been possible so easily. It was made too easy for him.

In Germany, there’s a saying—and I’m sure there’s a similar one in English—if you make things too easy, you essentially create theft. If it’s that easy for someone to commit a crime, then sooner or later, someone will take advantage of it.

We have created a self-settlement, self-trading, and self-clearing exchange for all derivatives, including real perpetual futures and other products. This is what the crypto industry needs if we want to prevent another FTX-like disaster. Suppose we want crypto to become more accessible to traditional investors and everyday people. In that case, we need to eliminate the risk that their exchange might collapse overnight.

Jacobsen: What regulatory measures do you believe are necessary to restore trust in the industry?

Gruhn: The most important thing—and where lawmakers often go wrong—is understanding that we need rules. Still, they must be tailored to crypto’s technological nature.

Historically, most banking laws were created due to fraud or other financial crimes. That means some regulations are necessary. However, many politicians try to apply traditional financial regulations to crypto without considering the technical differences.

If technology can solve a problem that would typically be addressed by governance or regulations, we should use it instead. IT-based solutions are more reliable and efficient.

For example, a smart contract can automate processes that would otherwise require human oversight. Suppose a smart contract can enforce an agreement. In that case, it is better than having an intermediary manually check whether it was executed or using a third party as an escrow service.

We need a regulatory framework that provides basic protections and oversight while allowing technology to replace traditional financial mechanisms where possible.

With Perpetuals.com, our exchange eliminates the need for a clearinghouse. Traditionally, an exchange only facilitates trading in Europe, while a separate clearinghouse handles margin, clearing, and settlement. But with today’s technology, we can combine those functions into one.

We use stablecoins, tokenized instruments, and tokenized stocks, allowing us to handle everything ourselves. We built a private blockchain specifically for this purpose. This blockchain provides the same advantages a clearinghouse typically would—ensuring accurate settlement, tracking ownership at any given time, and eliminating reliance on third-party clearinghouses.

This approach reduces costs and removes risks. A clearinghouse itself can fail, especially in a financial crisis. By integrating these processes directly onto a blockchain, we increase transparency and security, which is critical for the future of digital asset trading.

So that’s what regulations should aim for—identifying where smart technology can be utilized and allowing people to use it.

The biggest issue right now is that regulations often do not allow the full potential of technology. Instead, businesses are forced to create paper-based policies and train employees on procedures that could easily be automated with technology. This inefficiency slows progress and adds unnecessary complexity.

Jacobsen: What do you find more difficult to operate—media or crypto?

Gruhn: Whoa, that’s a difficult one. Both are challenging and fascinating in their own ways.

It’s hard to judge which is more difficult. In crypto, you deal with a high potential for fraud. Every single day, I receive phishing attempts on my crypto wallets. People know my LinkedIn profile, and I constantly get scam attempts, phishing emails, and fraudulent proposals asking me to invest in questionable schemes.

So, in crypto, you encounter bad actors more frequently.

At the same time, working in media is also challenging today because the world has become more complex. The media industry has evolved significantly, and how information is distributed, consumed, and regulated has changed.

I wouldn’t say one is more difficult than the other—both have unique challenges, and you have to navigate them accordingly.

Jacobsen: How has your faith helped you in these leadership roles?

Gruhn: Everyone should have faith because we need something greater than ourselves—beyond our ego.

In my management roles, my faith has helped in many ways. For example, suppose I’m upset or angry about a mistake someone made. In that case, I follow the Christian virtue of patience and reflection. Instead of reacting immediately, I stay quiet for the day. I wait until I attend Mass, reflect on the situation, and only then do I speak with the employee or business partner involved.

That practice of deliberation before reaction has helped me make better decisions in leadership.

Another way faith influences my leadership is through Catholic work ethics. In the Catholic tradition, we are taught to do our work as well as Jesus did when he was on Earth. If he built furniture, he certainly didn’t build a chair that collapsed under pressure. He did everything with excellence.

There’s also an analogy from European cathedrals. Many of these cathedrals have beautiful, intricate artwork placed in locations where no human could ever see it—on the highest towers or deep within the structure. They weren’t built for human admiration but for God.

The idea is that true craftsmanship and dedication go beyond immediate recognition. It teaches us that work should be done for short-term gains and with a long-term vision.

From a leadership and entrepreneurial perspective, this mindset helps build lasting companies. It encourages thinking beyond the present moment and planning for the future, which sustains success over time.

Jacobsen: Is there a similarity between the strategy or operations of a crypto company or website and those of a media company? Or are they completely different?

Gruhn: I don’t know. There are differences in day-to-day operations.

For example, you must manage wallet security and IT infrastructure in crypto. In contrast, in media, you deal with live broadcasts and IT security for streaming. So, the hands-on tasks are different.

However, I’m strategic, and management principles apply across all industries. After I sold my first company, I worked for a few years as an interim manager, overseeing various companies, including some in the electricity sector in Germany.

Through those experiences, I saw that strategic management is a generalized concept that applies across industries, whether it’s crypto, media, or energy.

Strategic management is about understanding the necessary tasks, assembling the right team, and executing a clear vision.

For example, you want a secure wallet system. In that case, you need experts who can tell you what security measures are necessary. If you want redundant live broadcasts from Rome, you need professionals to set up the infrastructure. But beyond the technical details, you must connect these tasks to a broader strategy.

Success in any industry comes down to asking:

• Where do we want to go, and why?
• What is the market opportunity?
• What is missing for our audience or customers?

For our nonprofit TV network, we analyzed what our audience was missing. We saw that people wanted live broadcasts of the Pope and events from Rome, so we set a strategic goal: Provide live broadcasts from Rome.

We needed to build partnerships, negotiate contracts, and set up the necessary technical infrastructure to achieve this. We installed cameras in a church in Rome, and now, we broadcast live from that church once a week.

So, we identified a strategic need and then mapped out the necessary steps to achieve it, from legal agreements to technical execution.

Crypto works the same way.

We looked at the European market and realized something was missing: Perpetual futures. Foreign companies only offered these products illegally, which meant European traders lacked a regulated alternative.

That’s why I co-founded Perpetuals.com with Robin and Naya. Our strategic goal was to create a fully compliant, self-clearing perpetual futures exchange for Europe.

Once we defined that goal, we mapped out the necessary steps—building the technology, obtaining regulatory approvals, and setting up clearing mechanisms.

So, whether it’s a live broadcast from Rome or a regulated futures exchange, the strategic process is the same:

1. Identify what is missing.
2. Set a clear objective.
3. Define the required steps.
4. Bring in experts to execute the technical details.

The industry may be different, but the strategic thinking remains the same. So, strategic management is the key. It applies to all industries, whether crypto, media, or finance.

Jacobsen: What’s next for you in the digital finance and media landscape? Are any new ventures on the horizon?

Gruhn: Yes.

We are about to go live with Perpetuals.com. I can’t reveal everything until the official launch, but I can give you a little teaser. We are introducing several new products alongside perpetual futures.

One issue in crypto that most traders don’t realize is the lack of fairness in the market. If you look at a simple question—what would someone have made if they had invested $5,000 in Bitcoin ten years ago?—the answer would be a significant return.

Now, compare that to the reality for most average crypto traders today. If you ask them how much they’ve made from a $5,000 investment, many will say:

• “I lost it.”
• “I lost half of it.”
• “I made $500.”

Why? Because the crypto market is not built for fairness, and part of that comes from the lack of regulation.

Currently, many crypto exchanges engage in front-running and preferential treatment for market makers. Certain insiders gain access to privileged information that would be considered illegal insider trading in a regulated financial market.

That’s what I want to change.

I want to create a fairer trading environment in which retail traders are not systematically disadvantaged. Right now, retail traders compete against high-frequency traders and institutional market makers, who have unfair advantages in terms of execution speed, privileged access, and exclusive insights.

Additionally, we are developing new financial products that are safer for retail traders.

I love perpetual futures—I recently wrote an academic paper about them—but they carry risks, especially for retail users.

So, we are introducing new products that allow traders to speculate on Bitcoin’s price movements with built-in risk protections.

For example, we will offer products with:

• Guaranteed stop-loss mechanisms—no slippage, no unexpected liquidation.
• Protection during extreme market volatility—so traders don’t lose their entire portfolio in a sudden market crash.

If we want crypto to become mainstream, we must ensure it is fair and safe for retail traders.

We have already seen how predatory some financial products can be, especially in Europe with CFDs (Contracts for Difference).

• In Canada, CFDs are regulated but still available.
• In the U.S., CFDs are banned for retail traders.
• In Europe, many CFD providers exploit retail traders, with 80% losing money.

CFD providers often profit directly from client losses, which creates a predatory system. We want to change that.

That’s why, with Perpetuals.com, we are developing new financial products that will make trading safer and more transparent.

Jacobsen: Patrick, thank you very much for your time today. It was nice to meet you.

Gruhn: Thanks for having me.

Jacobsen: Thank you. Bye.

Last updated May 3, 2025. These terms govern all In Sight Publishing content—past, present, and future—and supersede any prior notices. In Sight Publishing by Scott Douglas Jacobsen is licensed under a Creative Commons BY‑NC‑ND 4.0; © In Sight Publishing by Scott Douglas Jacobsen 2012–Present. All trademarks, performances, databases & branding are owned by their rights holders; no use without permission. Unauthorized copying, modification, framing or public communication is prohibited. External links are not endorsed. Cookies & tracking require consent, and data processing complies with PIPEDA & GDPR; no data from children < 13 (COPPA). Content meets WCAG 2.1 AA under the Accessible Canada Act & is preserved in open archival formats with backups. Excerpts & links require full credit & hyperlink; limited quoting under fair-dealing & fair-use. All content is informational; no liability for errors or omissions: Feedback welcome, and verified errors corrected promptly. For permissions or DMCA notices, email: scott.jacobsen2025@gmail.com. Site use is governed by BC laws; content is “as‑is,” liability limited, users indemnify us; moral, performers’ & database sui generis rights reserved.