The ownership dispute between Backpack Exchange and the FTX estate regarding FTX EU has caused significant controversy.
Backpack claimed to have acquired FTX EU with regulatory approval from the Cyprus Securities and Exchange Commission (CySEC) in December 2024. However, the FTX estate strongly rebutted these claims, asserting that FTX EU shares are still owned by FTX Europe AG. This dispute raises questions about the legitimacy of Backpack's acquisition and the future of FTX EU.
Another aspect of the dispute revolves around creditor repayments. Backpack stated that it will oversee the distribution of funds to former FTX EU customers and rebrand the entity as Backpack EU. However, the FTX estate contested this, stating that Backpack is not authorized to handle creditor repayments. This has caused confusion among creditors, who are uncertain about the repayment process.
The ongoing uncertainty surrounding the repayment process has raised concerns among creditors, particularly FTX EU customers. The private sale of FTX EU to Backpack has created confusion about the status of their funds and who will be responsible for distributing them. This lack of clarity and conflicting claims between Backpack and the FTX estate have heightened anxiety among creditors.
The resolution of the ownership dispute between Backpack Exchange and the FTX estate will have regulatory implications and could shape the future of cryptocurrency transactions and acquisitions. The involvement of regulatory bodies like CySEC adds scrutiny to the situation, highlighting the need for clear guidelines and frameworks in the cryptocurrency industry.