FTX, the bankrupt cryptocurrency exchange, has refuted claims by Backpack regarding the acquisition of its European subsidiary, FTX EU. In a statement dated January 8, FTX clarified that the U.S. Bankruptcy Court for the District of Delaware has not approved any such acquisition by Backpack. Additionally, FTX emphasized that Backpack is not authorized to distribute funds to any FTX customers or creditors.
Backpack had previously announced on January 7 that it had acquired FTX EU and intended to manage creditor repayments to EU customers as part of the bankruptcy proceedings. The company also expressed plans to expand its operations in Europe utilizing FTX EU’s Markets in Financial Instruments Directive (MiFID) II License.
However, FTX disclosed that while it had agreed to sell FTX EU to certain former insiders of FTX Europe under a settlement agreement, neither FTX nor the bankruptcy court was informed of any subsequent transfer to Backpack. FTX stated, “Backpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors, including any former FTX EU customers.”
This development introduces uncertainty regarding the status of FTX EU and the process for creditor repayments. FTX reiterated that it remains solely responsible for returning funds to former FTX EU customers and that any amounts owed will be determined by FTX EU following the completion of a sale. The company also noted that its Chapter 11 plan of reorganization became effective on January 3, 2025, with initial distributions expected within 60 days.
