FTX claims Backpack's acquisition of its EU subsidiary has not received court approval and has not been authorized to distribute funds to FTX creditors.

According to TechFlow news on January 9, Cointelegraph reported that the bankrupt cryptocurrency exchange FTX stated that its European branch FTX EU has not received court approval for the acquisition deal by the cryptocurrency exchange Backpack, and Backpack has not been authorized to distribute funds to FTX creditors.

Backpack stated on January 7: It has acquired FTX EU and will take on the responsibility of repaying debts to EU customers as part of a court-approved bankruptcy process. Backpack founder Armani Ferrante stated that his exchange would not conduct any trading in the EU until it can repay FTX creditors, adding that it may be ready as early as February.

However, in a statement on January 8, FTX stated: The deal for Backpack to 'claim' the acquisition of FTX EU has not taken place and has not been approved by the U.S. Bankruptcy Court for the District of Delaware, adding that all statements released by Backpack were made without FTX's knowledge. FTX debtors had previously agreed to sell FTX EU to some 'former insiders' of FTX Europe under a settlement agreement supervised by the bankruptcy court, but only mentioned that those former insiders had agreed to indirectly transfer FTX EU to Backpack. FTX also pointed out that Backpack has not been granted the authority to manage creditor repayments.

In previous news, Backpack acquired FTX EU, becoming the only compliant perpetual contract trading platform in Europe.