FTX disputes Backpack Exchange’s claim to have bought FTX EU

FTX’s liquidators called Backpack’s statements about an alleged acquisition of FTX EU and the reimbursement of former customers “misleading”.

The FTX Debtors today provided clarification on certain statements by Backpack relating to Backpack’s purported acquisition of FTX EU. Read more here: https://t.co/WVwfNXBKRj

— FTX (@FTX_Official) January 8, 2025

FTX said the company, founded by former employees of the exchange and Alameda Research, issued the press release without its knowledge or involvement. The estate clarified several points from Backpack’s statement:

• As of today, 100% of FTX EU’s equity is owned by the exchange’s European subsidiary, FTX Europe AG;
• previously, as part of a settlement, FTX creditors supported selling the European platform to former FTX Europe insiders. Those insiders agreed to an indirect transfer of FTX EU to Backpack. However, the Delaware bankruptcy court has not approved this transaction;
• FTX has not authorized Backpack to make any reimbursements to its former customers, including users of FTX EU;
• Backpack has no involvement in the court-approved process for returning funds.

“FTX expressly disclaims any responsibility for the accuracy or completeness of any information contained in Backpack’s press release, on its website or in other communications,” the exchange’s representatives concluded.

Backpack responded to FTX’s release with an official statement clarifying several assertions. The company set out the following:

• in February 2024 FTX agreed to sell various European assets, including FTX EU, to a group of former insiders;
• in March the bankruptcy court approved the deal, which closed in May;
• proceeds from the sale flowed into the FTX estate;
• Backpack subsequently bought the same European assets from their new owners;
• acquiring a licensed entity required approval from the Cyprus Securities and Exchange Commission. The regulator granted it in December.

The company now awaits the transfer of FTX EU shares from the former owners; the entity will be renamed Backpack EU.

I have an enormous amount of appreciation for the FTX estate’s commitment to maximizing customer returns, but my concern is that FTX EU customers may become confused here.

This is the series of events. All publicly verifiable.

— FTX EU was sold to its original founders and…

— Armani Ferrante (@armaniferrante) January 9, 2025

Backpack CEO Armani Ferrante stressed that FTX bears no responsibility for reimbursing users of the European platform. That process will be overseen by his company.

FTX’s reorganisation plan took effect on January 3. Initial creditor distributions are due within 60 days of that date.