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FTX has clarified that Backpack's claims of acquiring its European arm, FTX EU, and managing fund repayments are misleading. The U.S. Bankruptcy Court has not approved this sale, and Backpack is unauthorized to distribute funds to creditors, with FTX EU remaining responsible for customer repayments.
Backpack Exchange claims it legally acquired FTX EU, but the FTX estate disputes this, asserting ownership remains with FTX Europe AG. The estate also challenges Backpack's authority to manage creditor repayments, raising concerns among FTX EU customers about the repayment process and the involvement of other entities like Kraken and Bitgo.
Backpack Exchange has claimed ownership of FTX EU after regulatory approval from CySEC, asserting it purchased the assets from co-founders Patrick Gruhn and Robin Matzke. However, the FTX estate disputes this, stating that FTX EU shares remain with FTX Europe AG and that Backpack is unauthorized to manage creditor repayments, causing confusion among former customers regarding fund distribution.
FTX has contested the sale of its European subsidiary, FTX EU, to Backpack, a platform founded by former FTX employees, claiming no court approval for the transaction. FTX asserts that the transfer was arranged without its or the court's knowledge and emphasizes that Backpack is not responsible for settling claims related to FTX EU's former customers. In contrast, Backpack's CEO insists the acquisition was legitimate and approved by regulatory authorities, stating that FTX EU's obligations are now managed solely by Backpack.
FTX has stated that Backpack's acquisition of its European arm, FTX EU, has not been approved by the bankruptcy court, and Backpack is not authorized to manage creditor repayments. Backpack announced the acquisition on January 7, claiming it would handle repayments to EU customers, but FTX clarified that it was unaware of any indirect sale to Backpack prior to this week. The reorganization plan for FTX took effect on January 3, allowing creditors to begin receiving repayments, with initial distributions expected within 60 days for eligible claims.
Mad Lads NFTs saw a 19% price surge following Backpack's acquisition of FTX Europe and its MiFID II exchange license, briefly reaching a floor price of nearly $18,300. Although the price has since corrected to $16,240, speculation around potential benefits from the acquisition continues. The collection has gained significant traction, with over $1.8 million in secondary trading in the last 24 hours, making it the second-most-traded NFT collection across blockchains.
Backpack Exchange has acquired FTX EU for $32 million, aiming to prioritize the return of customer EURO funds. The deal, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, will enable Backpack to expand its services in the EU, including spot, margin, and futures trading. CEO Armani Ferrante emphasized the commitment to returning funds to FTX EU customers, with further announcements expected soon.
Backpack Exchange, founded by ex-FTX employees, has acquired FTX EU, ensuring customer claims are handled and regulatory compliance is met. With new licenses, the company plans to launch crypto derivatives in early 2025, aiming to restore trust in the market post-FTX's bankruptcy. The integration of FTX EU is seen as a commitment to better regulation in Europe’s cryptocurrency landscape.
Backpack Exchange has acquired FTX EU for $32.7 million, with approval from Cyprus regulators and the FTX bankruptcy court. The company, founded by former FTX employees, plans to launch in Q1 2025 as Europe’s sole regulated provider of perpetual futures, focusing on returning customer funds owed by FTX EU.
Ripple has overtaken Ethereum as the second-most preferred cryptocurrency among South Korean investors, following Bitcoin, according to a recent survey. Despite facing challenges, including a lawsuit with the U.S. Securities and Exchange Commission, Ripple saw a significant 400% price increase in 2024, maintaining its popularity since 2017.In other news, Backpack, a crypto exchange founded by former FTX executives, has acquired FTX EU, enabling it to offer regulated crypto derivatives in Europe. The new branch aims to launch in Q1 2025, providing a range of financial products and integrating traditional payment systems.
Armani Ferrante
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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