Backpack Responds to FTX Statement

HANOVER, Germany, Jan. 8, 2025 /PRNewswire/ -- Backpack Exchange, a fully regulated global cryptocurrency exchange, today responded to statements made by FTX Trading LTD (d/b/a. FTX.com) and the FTX Recovery Trust (collectively "FTX") regarding the recent acquisition of FTX EU. 

Backpack recognizes that the sale of FTX's European assets is a complex process and appreciates the FTX bankruptcy estate for their commitment to clarity and maximizing customer return.

We would like to issue this press statement to clarify certain statements made by the FTX estate that could potentially be confusing to FTX EU customers.

As widely reported in early 2024, FTX entered into a sale of various European assets, including FTX EU, to certain former insiders in February 2024, which was approved by the FTX bankruptcy court in March 2024 and subsequently closed in May 2024. Payments have been made to the FTX bankruptcy estate in accordance with the terms of purchase.

Subsequently, Backpack purchased the same European assets from these same insiders, which has also been completed and reflected on official publicly available German court records since June 2024.

As a licensed entity, the transfer of the FTX EU entity was subject to regulatory approval by CySec. In December 2024, CySec approved Backpack's purchase following a lengthy diligence process. Following such approval, the FTX estate is obligated to transfer the shares as set out in the court-approved sales and purchase agreement.

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.

The FTX estate will not be responsible for the repayment of any funds owed by FTX EU to former FTX EU customers. FTX EU will be renamed to Backpack EU and Backpack EU will be solely responsible for redistributing former FTX EU customer funds. 

If there is any confusion, we welcome any questions from former FTX EU users. Please do not hesitate to reach out to [email protected] with any questions.

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SOURCE Backpack Exchange