The post FTX Exposes Backpack’s Misleading Acquisition Of Acquiring FTX EU appeared first on Coinpedia Fintech News
FTX.com and the FTX Recovery Trust have exposed Backpack’s claims of acquiring FTX EU, calling them misleading and confusing. The statements also raised doubts about Backpack’s involvement in repaying customers. FTX has now stepped in to reveal the real facts about FTX EU’s ownership, the court’s role, and the actual repayment process.
FTX Clarification On Backpack’s Claims
On January 7, 2025, Backpack released a press statement claiming it had acquired FTX EU. However taking quick action, FTX responded that till date it still owns 100% of the share capital of FTX EU through its subsidiary, FTX Europe AG. And this declaration was made without their knowledge or approval.
Although there was an earlier agreement to transfer shares of FTX EU to former insiders of FTX Europe under a U.S. Bankruptcy Court settlement, this transfer has not yet been completed.
FTX further noted that if these former insiders had indirectly transferred FTX EU to Backpack without notifying FTX or the U.S. Bankruptcy Court.
Moreover, FTX has confirmed that neither the U.S. Bankruptcy Court nor FTX approved Backpack’s acquisition claims. Therefore Backpack lacks any official backing or approval.
Backpack’s Misleading Statements
In a press release Backpack claimed it would assist with returning funds to former FTX EU customers. However, FTX made it clear that Backpack has no authority to manage customer repayments.
Any amounts owed to FTX EU customers will be determined solely by FTX EU after its sale is completed. The company also clarified that it is not responsible for any repayments related to FTX EU.
Disclaiming Backpack’s Communications
FTX distanced itself from Backpack’s press release and website, stating that it has not reviewed or approved any of the information shared by Backpack. The company warned that Backpack’s statements could confuse FTX EU and the U.S. bankruptcy process.
Backpack, established in 2022 by Solana developer Ferrante, claims that acquiring FTX EU will boost its European presence through the MiFID II License.
Updates on FTX’s Recovery Efforts
As part of FTX’s U.S. Bankruptcy Court-approved Chapter 11 reorganization plan, initial distributions for customers with claims of $50,000 or less will begin within 60 days of January 3, 2025. This process will comply with strict know-your-customer and regulatory guidelines.