FTX Breaks Silence on Backpack’s FTX EU Acquisition Claim

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On January 8, 2025, FTX released a statement to set the record straight about the rumors surrounding Backpack entities’ acquisition of FTX EU Ltd. This response comes after Backpack’s press release on January 7, which incorrectly implied that they played a role in recovering assets for FTX EU’s previous customers.

FTX has stated that Backpack’s announcement was unauthorized and included inaccurate information. To clear things up, FTX has revealed that the entire ownership of FTX EU’s shares still belongs to FTX Europe AG, a company under FTX’s control.

Although there was an arrangement for the sale of FTX EU, the U.S. Bankruptcy Court responsible for FTX’s Chapter 11 proceedings has yet to give approval for any transfer. It’s important to note that Backpack plays no role in the bankruptcy proceedings or in returning funds to the former customers of FTX EU.

The discussion further tackled the issue of Backpack’s duty to reimburse EU clients. It was emphasized that it is solely FTX EU, with the necessary authorization, who can decide and refund any funds owed to its customers.

According to the court’s bankruptcy arrangement, Backpack cannot make any payments to creditors. Additionally, FTX shared details about their bankruptcy plan with stakeholders, which took effect on January 3, 2025.

As an analyst, I’m sharing that we anticipate distributing claims to beneficiaries within the next 60 days, subject to regulatory approval. To prevent any confusion, I recommend relying solely on formal communications from our organization. It’s essential to note this update arrives during a time when there is media speculation about possible legal actions involving FTX founder Sam Bankman-Fried.

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2025-01-09 10:28