FTX Exchange Disputes Sale of European Subsidiary to Backpack
The bankrupt FTX exchange is currently in a legal battle over the proposed sale of its European subsidiary, FTX EU, to Backpack, a crypto platform founded by former FTX employees.
FTX’s Clarification
In a recent statement, FTX clarified that its subsidiary FTX Europe AG is the sole owner of FTX EU. The company emphasized that the transfer of FTX EU shares to former insiders of FTX Europe has not taken place as previously announced.
FTX also stated that the United States Bankruptcy Court for the District of Delaware did not approve Backpack’s acquisition of FTX EU. Previous agreements allowed the sale of FTX EU to former FTX Europe insiders under the court’s oversight as part of a settlement. However, FTX claims that the insiders orchestrated an indirect transfer of FTX EU to Backpack without proper authorization.
FTX EU Asset Recovery
FTX made it clear that Backpack’s acquisition of FTX EU does not involve returning funds to customers or creditors under the US Bankruptcy Court’s jurisdiction. FTX EU is responsible for handling any liabilities owed to its former customers independently.
After the sale of the subsidiary is finalized, FTX will exclusively manage customer claims related to FTX EU. The exchange emphasized that it is not responsible for settling these claims or managing customer funds held by FTX EU.
FTX also distanced itself from Backpack’s recent communications regarding asset recovery, stating that it has not reviewed or approved any information released by Backpack.
Backpack’s Response
Backpack maintains that the acquisition of FTX EU was legitimate and compliant with regulatory standards. CEO Armani Ferrante stated that the transaction involved FTX EU’s founders and was approved by the Cyprus Securities and Exchange Commission after a thorough review process.
“FTX EU was sold to its original founders and approved by the bankruptcy court, free and clear. Backpack bought the company not from the estate, but from the FTX EU founders.”
Ferrante clarified that Backpack is now solely responsible for managing FTX EU’s obligations to former customers and is not involved in FTX’s bankruptcy proceedings.
