Backpack Acquires FTX EU Assets: Deal Completion and Reaction

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by Giorgi Kostiuk

2 years ago


Backpack officially announced the completion of the acquisition of FTX EU assets. This process involved regulatory scrutiny and received approval from the Cyprus Securities and Exchange Commission in December 2024, following the deal's finalization in June of the same year. However, an FTX statement raised doubts about the acquisition claim.

FTX's Position

FTX has raised concerns over the situation. In a press release, FTX clarified that Backpack’s acquisition of FTX EU has not been approved by the U.S. Bankruptcy Court. Furthermore, Backpack has not been authorized by FTX to distribute any funds to FTX customers, including those who held accounts with FTX EU. FTX emphasized that the court-approved transfer of FTX EU shares to Backpack did not occur prior to the official announcement made by Backpack on January 7, 2025. Additionally, FTX has not reviewed or approved any communication by Backpack regarding asset recovery for former FTX EU customers.

FTX expressly disclaims any responsibility for the accuracy or completeness of any information contained in Backpack's press release.FTX

Backpack's Response

Backpack has strongly defended its position, stating that the acquisition was conducted in full compliance with both legal and regulatory frameworks. The company clarified that the transfer of FTX EU assets was conducted under the supervision of the bankruptcy estate and that all necessary payments were completed as per the purchase agreement. The history of the deal began with the approval of the FTX EU asset sale by the U.S. Bankruptcy Court in early 2024. Subsequently, after due diligence, the company received regulatory approval in Cyprus in December 2024, securing rights to the European arm of FTX.

The Future of Backpack EU

The newly acquired platform, which will operate under the name Backpack EU, is set to launch in the first quarter of 2025. As a fully regulated exchange, Backpack EU will offer a comprehensive suite of cryptocurrency derivatives, including perpetual futures, across the European Union. Backpack has emphasized its commitment to providing a secure and transparent trading platform for its customers.

The acquisition deal of FTX EU assets by Backpack sparked disagreements with FTX but was completed with adherence to all legal norms. The new project is set to operate safely and reliably in the European market.

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