Backpack has officially announced the completion of its acquisition of FTX EU assets after receiving approval from CySec in December 2024. This follows regulatory scrutiny and approvals despite recent disputes with FTX.
FTX's Position
FTX has raised concerns over the clarity of the situation. In a recent 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.
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 to the FTX bankruptcy estate were completed as per the purchase agreement.
Acquisition Timeline and Process
Backpack’s acquisition of FTX EU assets has 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. The transaction, which 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, marking the official transfer of ownership to Backpack, with the company now fully in control of the European division of FTX.
Now, with the deal finalized, the platform named 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 to clients across the European Union.
