In recent developments, the bankrupt crypto exchange FTX has made it clear that the acquisition of FTX EU by Backpack has not received the necessary approval from the bankruptcy court. This announcement comes on the heels of Backpack’s claim that it would take on the responsibility for repaying FTX’s creditors, which has raised concerns among stakeholders.
Backpack, a newcomer in the crypto exchange arena, had announced its acquisition of FTX EU on January 7, sparking expectations of a smooth transition for creditor repayments. However, in a statement released on January 8, FTX clarified that Backpack’s acquisition was merely a purported transaction and not formally sanctioned by the US Bankruptcy Court for the District of Delaware. The court emphasizes that all communications from Backpack regarding this matter were issued independently and without FTX’s involvement.
As outlined in FTX’s statement, the company claims that prior agreements were made involving certain former insiders of FTX Europe in connection with its bankruptcy settlement. Unfortunately, FTX was unaware of Backpack’s indirect transfer of assets until very recently. The situation complicates further as FTX explicitly stated that no authorization has been granted to Backpack to manage any form of creditor repayments.
- FTX has clarified that it remains solely responsible for returning any owed funds to former customers.
- Backpack founder Armani Ferrante highlighted that operations in the EU would remain on hold until they could ensure creditor repayments were sufficiently managed.
- Customers wishing to reclaim lost funds must have registered claims through the official platform.
Given the ongoing fallout from FTX’s collapse, many are left to wonder about the future of Backpack’s operations in Europe. The company, which suffered significant losses amounting to $14.5 million during the FTX crisis, is committed to rebuilding its reputation.
As the reorganization plan for FTX took effect on January 3, it intends to start reimbursing creditors in phases, with the first group—including individuals with claims up to $50,000—expected to receive payment within 60 days. This sets the stage for a potentially lengthy process of navigating the bankruptcy complexities.
As stakeholders await clarity on who is ultimately responsible for repayments, the crypto community remains on high alert regarding the implications of this acquisition saga. Will Backpack be able to fulfill its promises, or will the legal and regulatory hurdles prove too great? Only time will tell as these developments unfold.
