Cryptocurrency exchange Backpack has issued a detailed statement addressing the ongoing controversy surrounding its acquisition of FTX EU, a European entity previously associated with the now-defunct FTX Trading LTD.
The debate centers on ownership claims and responsibilities for repaying customer funds.
While the FTX estate asserts that the transfer of FTX EU shares has yet to occur, Backpack insists that the sale was finalized and approved by regulatory authorities.
However, the exchange reiterates its commitment to returning funds to former FTX EU customers and distancing itself from the financial liabilities of the FTX estate.
Backpack’s FTX EU Acquisition: What’s Happening?
The confusion stems from conflicting narratives about the transfer of FTX EU ownership.
According to Backpack, FTX EU was initially sold to insiders Patrick Gruhn and Robin Matzke in a transaction approved by the FTX bankruptcy court in March 2024.
This sale was completed in May 2024. Backpack subsequently purchased FTX EU from Gruhn and Matzke, finalizing the acquisition in June 2024.
However, according to a Bloomberg report, the FTX estate’s recent statements claim that “100% of the share capital of FTX EU is held by FTX Europe AG, an FTX subsidiary” and that the transfer of shares to Gruhn and Matzke has not been completed.
Backpack cited approval from the Cyprus Securities and Exchange Commission (CySec), which sanctioned the ownership transfer in December 2024 after a rigorous due diligence process to bolster its position.
Backpack asserts that this regulatory milestone obligates the FTX estate to transfer the shares as outlined in the court-approved sales and purchase agreement.
Gruhn confirmed the Backpack transaction and stated that his lawyer informed FTX of CySec’s approval but received no response.
The FTX estate has not directly addressed these assertions, leaving the situation unresolved at the time of publication.
Backpack’s Commitment to Customer Funds
In the press release today, Backpack sought to provide clarity for former FTX EU customers.
The exchange stressed that it would be solely responsible for redistributing customer funds, explicitly stating that the FTX estate bears no liability in this matter.
“We look forward to the completion of the transfer so that, like the FTX bankruptcy estate, we can begin to return customer funds to former FTX EU customers.”
Once the transition is complete, FTX EU will be renamed Backpack EU, and operations will commence under the Backpack brand.
The exchange’s statement also highlighted plans for its European platform, set to launch in Q1 2025.
It claimed that the Backpack EU will offer a comprehensive suite of cryptocurrency derivatives, including perpetual futures, tailored to the European market.
Backpack framed its acquisition as an opportunity to provide a regulated and customer-focused platform, distancing itself from the controversies surrounding FTX’s collapse.
Amid these FTX developments, the FTX collapse is still uncovering more damage done.
Notably, the U.S. Department of Justice (DOJ) filed a civil forfeiture complaint in Nov 2024 to seize $16 in cryptocurrency from a Binance account linked to alleged bribes orchestrated by Sam Bankman-Fried, the former CEO of FTX.
These funds, including Solana (SOL), Avalanche (AVAX), and other tokens, are believed to have originated from illicit transactions tied to a $40 million bribe paid in 2021 to unfreeze $1 billion in assets on Chinese exchanges.
Authorities flagged the Binance account for suspicious activity, noting frequent deposits of stablecoins and Bitcoin swiftly converted via over-the-counter trades.
This new acquisition might help recover the fallout from FTX’s collapse, as Bankman-Fried, already convicted on fraud charges, is serving a 25-year prison sentence while appealing his conviction.
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