FTX Counters Backpack's Claim of Buying FTX EU

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by Giorgi Kostiuk

2 years ago


FTX and the FTX Recovery Trust have refuted Backpack's claims of acquiring FTX EU, describing them as misleading. FTX confirmed its ownership of FTX EU through its subsidiary and clarified the customer repayment process.

FTX’s Statement on Backpack's Claims

On January 7, 2025, Backpack claimed it had acquired FTX EU. However, FTX quickly responded that FTX EU is 100% owned by them through FTX Europe AG, and Backpack's statement was made without their knowledge. Although there was a previous agreement to transfer shares to former insiders of FTX Europe under a U.S. Bankruptcy Court settlement, it has not been completed. FTX noted that if the shares of FTX EU were transferred to Backpack without notifying them or the U.S. Bankruptcy Court, it was done illegally.

Backpack's Misleading Statements

Backpack claimed it would assist with returning funds to former FTX EU customers, but FTX made it clear that Backpack has no authority to manage customer repayments. Any amounts owed to FTX EU customers will be determined by FTX EU after its sale is completed. The company also clarified that it is not responsible for repayments related to FTX EU.

Disclaiming Backpack's Communications

FTX distanced itself from Backpack's press release and website, stating it has not reviewed or approved any information shared by Backpack. The company warned that Backpack's statements could confuse matters related to FTX EU and the U.S. bankruptcy process. Backpack, established in 2022 by Solana developer Ferrante, claims that acquiring FTX EU will boost its European presence through the MiFID II License.

FTX continues its U.S. Bankruptcy Court-approved Chapter 11 reorganization process, with initial distributions for customers with claims of $50,000 or less to begin within 60 days of January 3, 2025.

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