by Backpack responds to the controversy surrounding its purchase of FTX EU, claiming regulatory approval and promising to reimburse customers in the face of disagreements with the FTX bankruptcy estate.
In a thorough statement, cryptocurrency exchange Backpack addressed the continuing controversy surrounding its purchase of FTX EU, a European company that was formerly connected to the now-defunct FTX Trading LTD. Ownership claims and accountability for returning consumer monies are at the heart of the argument.
Backpack maintains that the transaction was completed and authorized by regulatory bodies, despite the FTX estate’s claim that the transfer of FTX EU shares has not yet taken place. The exchange does, however, reaffirm its dedication to paying back money to previous FTX EU clients and removing itself from the FTX estate’s financial obligations.
What’s Going On With Backpack’s FTX EU Acquisition?
Divergent accounts of the transfer of FTX EU ownership are the source of the misunderstanding. Backpack claims that in March 2024, the FTX bankruptcy court authorized the sale of FTX EU to insiders Robin Matzke and Patrick Gruhn. May 2024 saw the completion of this sale. In June 2024, Backpack completed the transaction by purchasing FTX EU from Gruhn and Matzke.
But according to a Bloomberg story, the FTX estate recently stated that “FTX Europe AG, an FTX subsidiary, holds 100% of the share capital of FTX EU” and that the shares have not yet been transferred to Gruhn and Matzke. To support its stance, Backpack referenced the Cyprus Securities and Exchange Commission’s (CySec) approval, which authorized the ownership transfer in December 2024 following a thorough due diligence procedure.
According to Backpack, the FTX estate is required by this regulatory milestone to transfer the shares in accordance with the terms of the court-approved sales and purchase agreement. According to Gruhn, who verified the Backpack transaction, his attorney notified FTX of CySec’s permission but got no reply. At the time of publishing, the matter was still open because the FTX estate had not directly responded to these claims.
Backpack’s dedication to client funds
Backpack aimed to clarify things for former FTX EU customers in today’s press statement. The exchange made it clear that the FTX estate is not liable in this case and emphasized that it would be the only party in charge of allocating consumer monies.
Following the completion of the transfer, activities will start under the Backpack brand, and FTX EU will be renamed Backpack EU. Plans for the exchange’s European platform, which is scheduled to start in Q1 2025, were also addressed in the release.
According to the statement, the Backpack EU will provide a full range of bitcoin derivatives, including perpetual futures, that are specifically designed for the European market. Backpack distanced itself from the scandals surrounding FTX’s demise by framing its acquisition as a chance to offer a regulated and customer-focused platform.
The FTX collapse continues to reveal additional harm in the midst of these FTX developments. Interestingly, in November 2024, the U.S. Department of Justice (DOJ) filed a civil forfeiture case to confiscate $16 in cryptocurrency from a Binance account connected to purported bribes arranged by former FTX CEO Sam Bankman-Fried.
A $40 million bribe made in 2021 to unfreeze $1 billion in assets on Chinese exchanges is thought to have been the source of these monies, which include Solana (SOL), Avalanche (AVAX), and other tokens.
Because of the frequent deposits of stablecoins and the quick conversion of Bitcoin through over-the-counter trades, authorities highlighted the Binance account for suspicious conduct. Given that Bankman-Fried, who was previously found guilty of fraud charges, is currently serving a 25-year jail sentence while contesting his conviction, this new acquisition could aid in mitigating the effects of FTX’s demise.
