According to Foresight News, The Block reported that the FTX bankruptcy management agency claimed that Backpack Exchange's FTX EU acquisition announcement was released without its knowledge, and stated that Backpack did not participate in the process approved by the US Bankruptcy Court to return funds to any FTX creditors. FTX EU is still wholly owned by FTX Europe AG, and the previously planned transfer of shares to former FTX Europe insiders has not yet occurred.
Backpack issued a clarification in response to the FTX bankruptcy committee, stating that FTX sold various European assets, including FTX EU, to certain former insiders in February 2024, a transaction that was approved by the FTX bankruptcy court in March 2024 and subsequently completed in May 2024. Payments were made to the FTX bankruptcy estate in accordance with the terms of the purchase. Backpack subsequently purchased the same European assets from these insiders, and as of June 2024, this acquisition has also been completed and reflected in the official German public court records. As a licensed entity, the transfer of the FTX EU entity was subject to regulatory approval from CySec. In December 2024, CySec approved Backpack's acquisition after a lengthy investigation process. Following approval, the FTX estate is obliged to transfer the shares as set out in the court-approved sale and purchase agreement. The FTX bankruptcy agency will not be responsible for repaying any funds owed by FTX EU to former FTX EU customers. FTX EU will be renamed Backpack EU, and Backpack EU will be solely responsible for reallocating former FTX EU customer funds.