Bankrupt cryptocurrency exchange FTX has denied allegations that cryptocurrency exchange Backpack acquired its European subsidiary, FTX EU.
FTX said the deal had not been approved by the U.S. Bankruptcy Court in Delaware.
Backpack announced on January 7, 2025 that it had acquired FTX EU through court-approved bankruptcy proceedings. Backpack claimed it would oversee creditor repayments to FTX EU customers.
At the time, Backpack founder Armani Ferrante said the exchange would not begin trading in Europe until it had secured creditor repayments, with a goal of starting payments as early as February.
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FTX calls acquisition ‘alleged’
However, in a press release dated January 8, 2025 press releaseFTX rejected these claims, calling the acquisition “pretend.” FTX claimed it had not been sanctioned by the bankruptcy court.
Additionally, FTX clarified that Backpack was not authorized to distribute funds to creditors of the defunct exchange. He also said this backpack the press release was published without the knowledge and participation of the stock exchange.
FTX revealed that it previously agreed to sell FTX EU to “certain former insiders” of FTX Europe in a settlement supervised by the bankruptcy court.
The exchange added that it recently learned that these insiders transferred FTX EU to Backpack without prior notification to FTX or the court.
“Neither FTX nor the US Bankruptcy Court was informed of the indirect sale of FTX EU to Backpack. Before this week,” the company said.
FTX also clarified that it retains sole authority over customer refunds. “Backpack has not been authorized by FTX to make distributions to FTX customers or other creditors,” FTX said.
Backpack positioned acquisition as a means to expand its presence in Europe using the Markets in Financial Instruments Directive and Regulation (MiFID II) license from FTX EU.
Backpack has acquired FTX EU and its MiFID II license.
Our first priority is to return all client Euro funds to the name of FTX Estate, followed by the deployment of a full range of spot, margin and futures trading products.
Crypto criminal trading returns to Europe
pic.twitter.com/ExxYFufZHj
– Backpack
(@Backpack) THE The company, founded in 2022 by Solana developer Ferrante, previously received $20 million in funding from FTX and Jump Crypto. Despite losing $14.5 million during FTX’s collapse in 2022, Backpack continued operations with limited impact. funding.
FTX’s reorganization plan, which took effect on January 3, allows creditors to begin collecting their repayments. Initial refunds should be made to “convenience classes,” including claims of $50,000 or less, within 60 days.
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FTX settles lawsuit with Bybit
FTX Bankruptcy Mass Last Year reached $228 million settlement with cryptocurrency exchange Bybit to recover funds intended for repayment of FTX’s former customers and creditors.
Under the terms of paymentFTX will recoup $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit’s investment arm.
FTX initially launched a billion-dollar lawsuit against Bybit and Mirana in late 2023. It alleged that these entities used special privileges and “VIP” access to preemptively withdraw $327 million in digital assets and cash in the days leading up to the fall of FTX.
The bankruptcy estate of FTX set a goal begin customer reimbursements by early 2025.
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The post FTX Denies Approval for Backpack’s Acquisition of FTX EU Amid Bankruptcy Proceedings appeared first on 99Bitcoins.
