Backpack confirmed on Tuesday its acquisition of FTX’s European division, FTX EU, and is set to handle the distribution of approved bankruptcy claims after receiving regulatory backing. However, this claim has been contested by FTX’s bankruptcy management.
What Does FTX Bankruptcy Management Say?
On Wednesday, FTX’s bankruptcy management responded, asserting that Backpack’s announcement was made without their prior notice. They accused Backpack of potentially misleading the public regarding FTX EU and the complexities of the U.S. bankruptcy system.
How Did Backpack Address the Claims?
In light of the backlash, Backpack recognized the intricacies involved in the sale of FTX’s European assets. They expressed gratitude for the bankruptcy management’s focus on customer reimbursements, stating that the transfer of FTX EU shares to prior employees was completed with judicial approval back in May 2024, followed by their acquisition of these assets in June 2024.
- Backpack’s acquisition hinges on regulatory approval.
- FTX EU will rebrand as Backpack EU once operational.
- The responsibility for customer payments will transition entirely to Backpack EU.
Backpack operates as a cryptocurrency exchange and digital wallet platform, founded by ex-employees of FTX and Alameda. The company was valued at $120 million during its Series A funding round in early 2024 and plans to launch Backpack EU this quarter, aiming to offer cryptocurrency derivatives.
The FTX saga began with the company’s bankruptcy filing in November 2022, leading to the conviction of its former CEO, Sam Bankman-Fried, for fraud and other charges in November 2023, resulting in a lengthy prison sentence.
