The sale of FTX's European subsidiary to Backpack continues to stir the crypto community. Backpack claims regulatory approval from Cyprus, but US bankruptcy court challenges the deal's legitimacy.
Sale of FTX EU and Backpack's Reaction
This week, Backpack announced the acquisition of FTX EU, even suggesting readiness to compensate European creditors. However, the US bankruptcy court questioned the legitimacy of the transaction due to lack of court validation. Founded by former employees of the failed crypto company, Backpack states the deal was approved by the Cyprus regulator, CySEC, in December 2024, with intentions to fulfill commitments to former FTX EU clients, starting reimbursements in February.
Creditors Awaiting Decisions
The US bankruptcy court emphasizes that only FTX is authorized to manage asset distributions under the reorganization plan validated in January 2025. Backpack defends by stating that the sale was validated outside US procedures, aiming to provide a regulated crypto trading platform in Europe.
Uncertain Future of FTX EU Creditors
The question remains: Will Backpack fulfill its reimbursement promises, or must creditors wait for another judicial decision? The future of FTX EU creditors remains uncertain, with court decisions potentially reshaping cryptocurrency transaction rules.
The situation surrounding the sale of FTX EU remains tense. Creditors face waiting on further decisions that could transform the cryptocurrency transaction landscape.
