In response to allegations made by Backpack concerning the purchase of FTX EU, the bankrupt crypto exchange FTX, has addressed these issues, specifically focusing on the return of customers’ assets.
On January 8th, the troubled cryptocurrency company made clear that neither the U.S. Bankruptcy Court had sanctioned the sale of FTX EU to Backpack, nor were they granted permission to handle payments to creditors from the funds.
Misleading Statement
On January 7th, Backpack, a worldwide cryptocurrency trading platform, shared via social media that they had taken over FTX EU. This acquisition includes managing repayments for European customers as part of the bankruptcy process, which has been approved by the court. Furthermore, Armani Ferrante, the founder, emphasized their dedication to collaborating with all necessary parties to ensure the swift return of customer funds within the EU region.
In more than 150 nations, this exchange announced that its acquisition has been endorsed by the Cyprus Securities and Exchange Commission (CySEC). They also revealed aspirations to extend their reach, particularly in crypto derivative markets, offering services like spot, margin, and futures trading throughout the European Union.
Nevertheless, FTX disputed the allegations, pointing out that Backpack’s press statement and accompanying site included several pieces of information that could be confusing or misleading. They emphasized that their subsidiary, FTX Europe AG, remains the sole owner of 100% shares in FTX EU.
The company stated that while a previous arrangement was made under judicial oversight for the transfer of FTX EU shares to previous FTX Europe insiders, this transfer has not been completed as of yet. They asserted that an indirect transfer of these shares to Backpack, orchestrated by these insiders, happened without the company’s awareness and without the court’s approval.
Backpack Has No Role in Fund Redistribution
Additionally, it was emphasized that Backpack does not have the right to distribute funds to any creditors or consumers, such as previous European clients. The closed exchange underscored that FTX EU is solely accountable for refunding money to its own customers.
As a researcher, I would rephrase that statement as follows: “I, as a neutral observer, note that FTX has explicitly stated they will not be held accountable for the repayment of funds owed by FTX EU to its previous customers. They have also made it clear that they do not assume any responsibility for such repayments by FTX EU.
Additionally, it was clarified that the precise debts owed by its subsidiary to its clients have yet to be established by the involved parties.
On January 3, 2025, the company officially verified that its plan for reorganization under Chapter 11, which was implemented to help with their financial restructuring, was successful. The initial date for distribution of these restructuring benefits is also set for January 3, 2025. As long as regulatory requirements are met, it’s anticipated that eligible claimants will receive their distributions within approximately two months (60 days).
As a researcher, I’ve come across an interesting development in the cryptocurrency sphere. On January 2, Celsius, another embattled crypto firm, submitted an appeal against FTX regarding a previous decision that dismissed its claim worth $444 million. This defunct crypto lender alleges that FTX officials tarnished its reputation by making unverified and disparaging remarks, which they believe played a role in Celsius’s collapse in 2022. They are seeking damages up to $2 billion.
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2025-01-10 22:14