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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Jan 09, 2025 06:35 UTC
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Backpack Misleads Public with False FTX EU Acquisition Claim: FTX
Backpack’s claim of acquiring FTX EU through a press release was unverified by FTX or court.
FTX responded that it still owns 100% of FTX EU, rejecting Backpack's misleading acquisition claims
FTX plans to distribute initial claims under $50,000 within 60 days of January 3, 2025.
FTX.com and the FTX Recovery Trust have rejected Backpack’s claims of acquiring FTX EU, calling them misleading and confusing. The announcement has also raised doubts about Backpack’s role in repaying FTX EU customers. FTX has now stepped in to clarify the facts about FTX EU’s ownership, the court’s role, and the repayment process.
Backpack’s Claim Sparks a Response
On January 7, 2025, Backpack released a statement claiming it had acquired FTX EU. FTX quickly responded, stating it still owns 100% of FTX EU’s share capital through its subsidiary, FTX Europe AG. FTX added that Backpack’s announcement was made without its knowledge or approval.
While there was an earlier agreement to transfer FTX EU shares to former insiders of FTX Europe under a U.S. Bankruptcy Court settlement, FTX confirmed this transfer has not yet been completed.
Backpack’s Misleading Statements
FTX expressed concerns that if former insiders had transferred FTX EU to Backpack without notifying FTX or the U.S. Bankruptcy Court, it would be unauthorized. FTX emphasized that neither it nor the court has approved Backpack’s acquisition claim, leaving Backpack without any official authority.
Backpack also stated it would help return funds to FTX EU customers. However, FTX clarified that Backpack has no authority over customer repayments. FTX explained that the repayment process will be managed exclusively by FTX EU, after its sale is finalized. Additionally, FTX confirmed it is not responsible for any repayments related to FTX EU.
A Hidden Agenda?
FTX distanced itself from Backpack’s press release and website, making it clear that it has not reviewed or approved any information shared by Backpack. The company cautioned that Backpack’s statements could mislead customers about FTX EU and the U.S. bankruptcy process.
Founded in 2022 by Solana developer Ferrante, Backpack claims acquiring FTX EU would help expand its presence in Europe using the MiFID II license. However, FTX’s objections raise doubts about these claims.
Updates on FTX’s Recovery Efforts
As part of FTX’s U.S. Bankruptcy Court-approved Chapter 11 reorganization plan, initial distributions for customers with claims of $50,000 or less will begin within 60 days of January 3, 2025. This process will comply with strict know-your-customer and regulatory guidelines.
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In this clash of claims, only the facts will determine the final outcome.
Yes 
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