According to previous reports by Zombit, Backpack announced that it has completed the acquisition of FTX EU and will assist former FTX EU users in recovering their funds. However, FTX Trading Ltd. (FTX) and its repayment trust fund (FTX Recovery Trust) issued a statement today (January 9) clarifying Backpack's announcement, pointing out that there is a misunderstanding regarding the details and responsibilities of the related transaction.

Key points from FTX's clarification statement

  1. Backpack's announcement was not authorized by FTX. FTX stated that the announcement released by Backpack on January 7, 2025, was made without its prior knowledge or participation. FTX pointed out that Backpack's announcement and related website contain several potentially confusing statements regarding FTX EU, FTX itself, and the U.S. bankruptcy process.

  2. Current Status of FTX EU. As of now, the entire equity of FTX EU is still held by FTX's subsidiary FTX Europe AG. Previously, FTX had agreed to sell FTX EU to former insiders of FTX Europe as part of a settlement agreement under the supervision of the U.S. bankruptcy court. However, FTX recently learned that these former insiders had indirectly agreed to transfer FTX EU to Backpack, but this transaction was not communicated to FTX or the U.S. bankruptcy court prior to this week. Therefore, this transaction is still subject to approval by the Bankruptcy Court of Delaware.

  3. Backpack is not authorized to distribute funds. FTX emphasized that Backpack is not authorized to distribute funds to any FTX customers or other creditors (including former FTX EU customers). FTX EU will be responsible for returning funds to its former customers, not Backpack or FTX. FTX further explained that the amount due to any FTX EU customer will be determined solely by FTX EU after the sale is completed, and FTX will not bear any repayment obligations.

  4. Non-acknowledgment of Backpack’s website and announcements. FTX stated that it has not reviewed or approved Backpack's website content and other communication information regarding the recovery of FTX EU customer assets, and will not be responsible for the accuracy and completeness of Backpack's announcements, websites, and other related statements.

In short, the sale transaction of FTX EU is still ongoing, and the repayment work will be led by FTX EU rather than Backpack.

Backpack Exchange

Backpack was founded in 2022 by Solana developer Ferrante, who reportedly secured $20 million in funding from FTX and Jump Crypto to establish the exchange. Another co-founder of Backpack, Tristan Yver's LinkedIn profile shows that he worked at FTX for at least two years before leaving the company in May 2022.

During the collapse of FTX in 2022, Backpack lost $14.5 million, which accounted for 88% of the company's operating funds. Since then, the company has continued to operate with minimal funding, and the exchange is also from the same team behind the NFT project Mad Lads.

Update on the FTX U.S. Bankruptcy Process

Additionally, FTX reiterated that its Chapter 11 restructuring plan, approved by the U.S. bankruptcy court, officially took effect on January 3, 2025. For small creditors who are allowed to file claims, the baseline date for the initial distribution is also January 3, and distribution is expected to be completed within 60 days, with compliance to KYC (Know Your Customer) and other distribution requirements.

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