FTX rebuts assertions made by Backpack Exchange regarding acquisition of FTX EU
FTX EU Acquisition by Backpack Remains Contingent on Bankruptcy Court Approval
In a series of events, Backpack, a financial services company, has expressed intentions to acquire FTX EU, a subsidiary of the collapsed crypto exchange FTX. However, the deal is yet to receive approval from the Delaware Bankruptcy Court.
The initial agreement for the sale of FTX's European assets, including FTX EU, was made with a group of former insiders on February 4, 2024. This group agreed to indirectly transfer FTX EU to Backpack, but the deal has not yet been formally approved by the court.
In a separate transaction, Backpack purchased these assets from the new owners. The sale is contingent on the approval of the Delaware Bankruptcy Court, which has not been granted yet.
The deal for FTX EU required the approval of the Cyprus Securities and Exchange Commission, which was granted in December 2024.
FTX's reorganization plan took effect on January 3, 2025, and initial creditor payments are due within 60 days of this date. However, it's important to note that the court-approved process for returning assets to FTX's clients is separate from any dealings with Backpack.
Despite Backpack publishing a press release about the alleged acquisition of FTX EU without notification or involvement from the liquidators, FTX has not authorized Backpack to make any statements regarding FTX EU or customer payouts.
FTX's CEO, Armani Ferrrante, stated on January 9, 2025, that FTX is not responsible for repaying former clients of the European platform. Backpack will handle this under his leadership.
The liquidators have disclaimed any responsibility for the accuracy or completeness of the information contained in Backpack's press release, website, or other communication channels.
The 100% ownership of FTX EU still lies with FTX Europe AG, the European subsidiary of the exchange.
If the deal is approved by the Delaware Bankruptcy Court, Backpack will take control of FTX EU and manage the process of returning funds to former clients. The company has stated its primary goal is the rapid and secure return of funds to customers to restore trust in the industry.
As of now, the timeline for customer payouts under Backpack remains uncertain, as the deal is still pending court approval. However, Backpack operates under strict regulatory oversight and bankruptcy court supervision, aiming to distribute repayments effectively.
| Event / Status | Date / Period | Details | |-------------------------------------|------------------------|----------------------------------------------------------------| | Agreement for FTX EU sale | February 4, 2024 | Deal with a group of former insiders, pending court approval[1] | | Purchase of European assets by Backpack | Unspecified | Separate transaction, pending court approval[2] | | CySEC approval for FTX EU sale | December 2024 | Approval granted, sale contingent on court approval[3] | | FTX reorganization plan effective | January 3, 2025 | Initial creditor payments due within 60 days[4] | | Backpack's press release about acquisition | January 8, 2025 | Without notification or involvement from the liquidators[5] | | Court approval for FTX EU sale | Pending | Delaware Bankruptcy Court approval required[1][2] | | FTX disclaims responsibility for repayments | January 9, 2025 | Backpack will handle customer payouts under Armani Ferrrante's leadership[6]| | Liquidators disclaim responsibility for information in Backpack's communication | Unspecified | Disclaimer in response to Backpack's press release[7] | | 100% ownership of FTX EU still with FTX Europe AG | Unspecified | European subsidiary of the exchange[8] |
The deal for FTX EU to be acquired by Backpack, a financial services company, is yet to be officially approved by the Delaware Bankruptcy Court. This approval is essential for the finalization of the sale, as it was initially agreed upon with a group of former insiders on February 4, 2024.
If the deal is approved, Backpack will manage the process of returning funds to FTX EU's former clients, with the primary goal being the rapid and secure return of funds to customers to restore trust in the industry. The company operates under strict regulatory oversight and bankruptcy court supervision, aiming to distribute repayments effectively.
