Recently, Backpack confirmed its acquisition of FTX's European division, sparking controversy among FTX's bankruptcy managers.
FTX Bankruptcy Management's Statement
On Wednesday, FTX's bankruptcy management stated that Backpack's announcement was made without their notice, accusing the company of potentially misleading the public about the complexities of the U.S. bankruptcy system.
Backpack's Response to Allegations
Backpack acknowledged the complexities involved in selling FTX's European assets. They expressed gratitude for the bankruptcy management's focus on customer reimbursements, stating that the transfer of FTX EU shares to prior employees was completed with judicial approval in May 2024, followed by their acquisition of these assets in June 2024.
Backpack's Plans and Timeline
Backpack's acquisition hinges on regulatory approval. FTX EU will rebrand as Backpack EU. Responsibility for customer payments will transition to Backpack EU. The company operates as a cryptocurrency exchange and digital wallet platform, founded by ex-employees of FTX and Alameda, and was valued at $120 million during its Series A funding round in early 2024, planning to launch operations this quarter offering cryptocurrency derivatives.
The FTX saga began with the company's bankruptcy filing in November 2022, leading to the conviction of its former CEO, Sam Bankman-Fried, for fraud in November 2023.
