FTX Denies Approval Of FTX EU Acquisition By Backpack Amid Bankruptcy Proceedings

Bankrupt cryptocurrency change FTX denied claims that crypto change Backpack has acquired its European subsidiary, FTX EU.

FTX mentioned that the deal has not been accredited by the US Chapter Court docket in Delaware.

Backpack introduced on 7 January 2025 that it had acquired FTX EU as a part of the court-approved chapter course of. Backpack claimed that it could oversee creditor repayments to FTX EU clients.

On the time, Backpack founder Armani Ferrante mentioned the change wouldn’t start buying and selling operations in Europe till it had ensured repayments to collectors, aiming to start payouts as early as February.

EXPLORE: 10 Coins with High Returns: Crypto Forecast 2025

FTX Calls the Acquisition “Purported”

Nevertheless, in a 8 January 2025 press release, FTX dismissed these assertions, calling the acquisition “purported.” FTX asserted that it had not been sanctioned by the chapter courtroom.

Moreover, FTX clarified that Backpack has not been approved to distribute funds to collectors of the defunct change. It additionally mentioned that Backpack’s press launch was issued with out the change’s information or involvement.

FTX revealed that it had beforehand agreed to promote FTX EU to “sure former insiders” of FTX Europe as a part of a settlement overseen by the chapter courtroom.

The change added that it lately discovered these insiders had transferred FTX EU to Backpack with out prior notification to FTX or the courtroom.

“Neither FTX nor the US Chapter Court docket was made conscious of the oblique sale of FTX EU to Backpack previous to this week,” the corporate mentioned.

FTX additionally clarified that it retains unique authority over buyer repayments. “Backpack has not been approved by FTX to make any distributions to any FTX clients or different collectors,” FTX mentioned. 

Backpack has positioned the acquisition as a method to broaden its presence in Europe utilizing FTX EU’s Markets in Monetary Devices Directive and Regulation (MiFID II) license.

Backpack has acquired FTX EU and its MiFID II License.

Our first precedence is to return all buyer EURO funds on behalf of the FTX property, adopted by rolling out a full suite of spot, margin, and futures buying and selling merchandise.

Crypto perps buying and selling is coming again to Europe 🇪🇺 pic.twitter.com/ExxYFufZHj

— Backpack 🎒 (@Backpack) January 7, 2025

The firm, based in 2022 by Solana developer Ferrante, beforehand acquired $20 million in funding from FTX and Bounce Crypto. Regardless of dropping $14.5 million throughout FTX’s 2022 collapse, Backpack has continued operations with restricted funding.

The reorganization plan for FTX, which took impact on 3 January, permits collectors to begin receiving repayments. Preliminary reimbursements are set to go to “comfort lessons,” together with claims of $50,000 or much less, inside 60 days.

EXPLORE: 3 Experts Predict: How High Can Bitcoin Go In 2025?

FTX Settles Lawsuit With Bybit

Final yr, the FTX chapter property reached a $228 million settlement with the cryptocurrency change Bybit to recuperate funds for repaying former FTX clients and collectors.

Below the phrases of the settlement, FTX will retrieve $175 million in digital belongings held by Bybit, and a further $53 million in BIT tokens, which might be bought to Mirana Corp, Bybit’s funding arm.

FTX initially launched a $1 billion lawsuit in opposition to Bybit and Mirana in late 2023. It alleged that these entities used particular privileges and “VIP” entry to pre-emptively withdraw $327 million in digital belongings and money within the days main as much as FTX’s downfall.

The FTX chapter property set a aim to start buyer repayments by early 2025.

EXPLORE: Former FTX Digital Markets Co-CEO Ryan Salame Sentenced To 7.5 Years In Prison