Backpack vs. FTX: European Arm’s Purchase Sparks Dispute
The FTX bankruptcy estate has voiced strong opposition to what it describes as an unauthorized sale of FTX EU assets to Backpack Exchange, a venture established by former FTX employees.
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This contested transaction involves the European subsidiary of the collapsed cryptocurrency exchange, which has been a focal point in the ongoing bankruptcy proceedings.
In a press release, FTX Trading Ltd. and the FTX Recovery Trust clarified statements made by Backpack on January 7 regarding the $32.7 million acquisition of FTX EU Ltd. and the return of funds to former FTX EU customers.
According to the report, FTX Europe AG, a subsidiary of FTX, holds 100% of the share capital of FTX EU. The previously announced transfer, however, has not yet occurred. The FTX entity stated:
The United States Bankruptcy Court for the District of Delaware did not approve the acquisition of FTX EU by Backpack.
Backpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors, including any former FTX EU customers.
FTX EU is solely responsible for the return of any funds it owes to former FTX EU customers.
Meanwhile, Backpack disputes the claims made by the FTX bankruptcy estate. According to Bloomberg, the exchange stated that the transaction had received approval from the Cyprus Securities and Exchange Commission in December.
Backpack also explained that the deal with FTX EU co-founders, Patrick Gruhn and Robin Matzke, was finalized in May, adding that “payments have been made to the FTX bankruptcy estate under the terms of purchase.”
With this approval in place, Backpack argues that the FTX estate is obligated to transfer the shares as stipulated in the court-approved sales and purchase agreement.
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