FTX Trading Ltd. has clarified that the U.S. Bankruptcy Court has not approved Backpack's acquisition of FTX EU, its European subsidiary. FTX stated that Backpack's announcement of the acquisition was made without its knowledge or involvement and that Backpack is not authorized to distribute funds to former FTX customers or creditors.
Backpack, a cryptocurrency exchange, had announced on January 7, 2025, that it acquired FTX EU and intended to return funds to former FTX EU customers. However, FTX clarified that while it had agreed to sell FTX EU to certain former insiders under a court-supervised settlement, the indirect transfer to Backpack was conducted without informing FTX or the court.
In response, Backpack stated that it had acquired FTX EU from former insiders, with the transfer finalized in June 2024 and approved by the Cyprus Securities and Exchange Commission (CySEC) in December 2024. Backpack emphasized that it would be solely responsible for redistributing funds to former FTX EU customers and that the FTX estate would not be responsible for these repayments.
This situation has led to confusion among former FTX EU customers regarding the status of their funds and the legitimacy of Backpack's acquisition. FTX has expressly disclaimed any responsibility for the accuracy of information released by Backpack and reiterated that any amounts owed by FTX EU to its former customers will be determined solely by FTX EU following the completion of a sale.
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