FTX, a bankrupt cryptocurrency exchange, has denied that its European branch, FTX EU, has been acquired by Backpack, a crypto exchange.
FTX clarified in a January 8 statement that the acquisition had not been approved by the US Bankruptcy Court or FTX itself.
According to FTX, communications from Backpack about the acquisition were made without FTX’s knowledge.
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FTX explained that while its debtors had agreed to transfer FTX EU to former associates of FTX Europe under court supervision, it only learned those associates had arranged to pass the ownership to Backpack. FTX stated:
Neither FTX nor the US Bankruptcy Court was made aware of the indirect sale of FTX EU to Backpack prior to this week.
Additionally, FTX emphasized that Backpack had no right to manage or distribute funds to creditors, stating, “Backpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors”.
On January 7, Backpack announced it had taken ownership of FTX EU and promised to repay FTX creditors in Europe as part of the bankruptcy process. The exchange had stated the acquisition would allow it to expand in Europe, using FTX EU’s existing Markets in Financial Instruments Directive and Regulation (MiFID) II License.
Backpack’s founder, Armani Ferrante, assured that no trading would occur in the region until all FTX customers were reimbursed, with February proposed as the earliest start date for repayments.
Meanwhile, crypto lending platform Celsius recently appealed a court ruling that dismissed its $444 million claim against FTX. What happened? Read the full story.
