The bankrupt cryptocurrency exchange FTX stated that Backpack's acquisition of its European subsidiary FTX EU has not yet been approved by the bankruptcy court, and Backpack has not been authorized to allocate funds to FTX creditors.
Backpack announced on January 7 that it has acquired FTX EU and stated that it will be responsible for repaying funds to creditors for EU customers according to the bankruptcy procedures approved by the court.
Backpack founder Armani Ferrante stated that the exchange will not 'engage in any transactions in the EU' until it is capable of repaying FTX creditors, and that it will be ready as early as February.
However, FTX stated in a statement on January 8 that Backpack's 'alleged' acquisition of FTX EU has not yet occurred and has not received approval from the U.S. Bankruptcy Court in Delaware, adding that all statements released by Backpack were made without FTX's knowledge.
FTX stated that the FTX debtors had previously agreed to sell FTX EU to 'certain former insiders' of FTX Europe under the supervision of the bankruptcy court according to a settlement agreement, but said they were only informed that these former insiders had agreed to indirectly transfer FTX EU to Backpack.
FTX said: 'Prior to this week, neither FTX nor the U.S. Bankruptcy Court had been aware of the news that FTX was being indirectly sold to Backpack. Backpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors (including any former FTX customers).' (Cointelegraph)

Yesterday's news reported that Backpack Exchange acquired FTX EU for $32.7 million and will be responsible for distributing $55 million in FTX bankruptcy claims.