Backpack has officially announced the completion of its acquisition of FTX EU's assets. This process involved significant regulatory scrutiny and approvals, ultimately finalized in December 2024.
FTX Clarifies Its Position
FTX has raised concerns over the clarity of the situation with Backpack's acquisition of FTX EU. In a recent press release, FTX clarified that the acquisition was not approved by the U.S. Bankruptcy Court. Moreover, Backpack has not been authorized by FTX to distribute any funds to FTX customers, including FTX EU account holders. FTX emphasized that the transfer of FTX EU shares to Backpack did not occur prior to the official announcement made by Backpack on January 7, 2025. The U.S. Bankruptcy Court has not been involved in the indirect transfer of FTX EU to Backpack. In addition, FTX has not reviewed or approved any communication by Backpack regarding asset recovery for former FTX EU customers.
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 from insiders to Backpack was conducted under the supervision of the bankruptcy estate and that all necessary payments were completed as per the purchase agreement.
Acquisition Timeline and Process
Backpack's acquisition of FTX EU assets unfolded over several months. The initial sale of FTX's European assets, including FTX EU, was approved by the U.S. Bankruptcy Court in early 2024. This sale was part of the court's efforts to settle the assets of the bankrupt cryptocurrency exchange. The transaction, closed in May 2024, saw FTX insiders acquire the assets before Backpack subsequently purchased them from these insiders. This deal was officially completed in June 2024, as evidenced by publicly available court records in Germany. However, the process did not end there. As a regulated entity, Backpack's acquisition required approval from CySec, the financial regulatory body in Cyprus. After a rigorous due diligence process, CySec granted its approval in December 2024. This approval marked the official transfer of ownership to Backpack, with the company now fully in control of the European division of FTX. It further reassured former FTX EU customers that the company would be responsible for redistributing any owed funds, with the new entity, Backpack EU, assuming full responsibility for these payments.
The newly acquired platform, Backpack EU, will operate as a fully regulated exchange and is set to launch in the first quarter of 2025, offering a comprehensive suite of cryptocurrency derivatives, including perpetual futures, across the European Union.
