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Highlights
- FTX states no court approval for Backpack’s acquisition of FTX EU.
- Backpack is not authorized to manage creditor repayments.
- FTX clarifies legal complexities surrounding its bankruptcy process.
FTX Trading Ltd., a bankrupt cryptocurrency exchange, has officially denied reports claiming that its European entity, FTX EU, was acquired by Solana-based exchange Backpack. FTX clarified that the transaction has not been approved by the U.S. Bankruptcy Court for the District of Delaware. The statement disputes claims made by Backpack about its role in managing creditor repayments.
Backpack’s Controversial Announcement
On January 7, Backpack issued a public statement asserting it had completed the acquisition of FTX EU. The company also declared its intentions to handle creditor repayments for FTX’s European customers. However, just a day later, FTX (FTT) refuted these assertions, calling the acquisition “purported” and emphasizing the lack of court approval for such a deal.
FTX disclosed that Backpack’s announcement was made without its knowledge or involvement. The company noted that previous court agreements involved selling FTX EU to “certain former insiders” of its European operations. However, the indirect transfer of FTX EU to Backpack occurred without any notification to FTX or the court.
In its statement, FTX clarified, “Backpack has not been authorized by FTX to make any distributions to former FTX customers or creditors.” FTX remains the sole entity responsible for managing creditor claims and reimbursements.
Backpack’s Ambitions Amid Financial Challenges
Despite FTX’s firm stance, Backpack, founded in 2022 and funded partially by $20 million from FTX and Jump Crypto, announced its intentions to launch creditor repayments by February 2025. The Solana-backed platform also highlighted plans to leverage FTX EU’s MiFID II License to expand its European operations.
However, the company has faced challenges following FTX’s 2022 collapse, incurring losses of $14.5 million. Despite limited resources, Backpack continues its operations, albeit under scrutiny.
FTX’s Bankruptcy and Legal Oversight
FTX’s reorganization plan, effective January 3, 2025, prioritizes claims under $50,000 in an initial distribution to creditors, expected to occur within 60 days. Eligible claimants must use the company’s official website to apply for reimbursements.
The ongoing disputes highlight the legal complexities of FTX’s bankruptcy and underscore the importance of adhering to court-supervised processes. Both FTX and Backpack have declined further comments on the acquisition. As the case unfolds, it remains a significant point of interest within the cryptocurrency community.
