FTX Denies Backpack’s FTX EU Acquisition Claims

FTX.com and the FTX Recovery Trust have called out Backpack’s claims of acquiring FTX EU, describing them as misleading and unapproved. In a press release dated January 7, 2025, Backpack alleged that it had acquired FTX EU and would assist with customer repayments. However, FTX swiftly debunked these assertions, providing clarity on the actual ownership, the role of the court, and the repayment process.

FTX Clarifies Ownership and Court Oversight

FTX has stated unequivocally that it still owns 100% of FTX EU’s share capital through its subsidiary, FTX Europe AG. The company emphasized that Backpack’s announcement was made without FTX’s knowledge or approval.

While there was a prior agreement to transfer shares of FTX EU to former insiders under a U.S. Bankruptcy Court settlement, this transfer has not been completed.

Additionally, FTX expressed concern that these insiders might have indirectly transferred FTX EU to Backpack without informing either FTX or the court.

Key Facts Clarified by FTX:

1. The U.S. Bankruptcy Court has not approved Backpack’s acquisition claims.
2. Backpack’s claims lack any official backing from FTX or the court.

Backpack’s Customer Repayment Assertions Debunked

In its press release, Backpack claimed it would assist in returning funds to former FTX EU customers. FTX responded that Backpack has no authority to manage repayments, which remain solely under FTX EU’s jurisdiction after the sale process concludes.

FTX also stressed that any customer repayments will adhere strictly to court-approved procedures, distancing itself from Backpack’s repayment claims.

Disclaiming Backpack’s Communications

FTX rejected Backpack’s press release and website content, warning that these unverified statements could confuse stakeholders regarding FTX EU and the U.S. bankruptcy process.

Backpack, founded in 2022 by Solana developer Ferrante, has positioned the alleged acquisition as a strategy to bolster its European presence through MiFID II licensing.

Updates on FTX Recovery Plan

FTX has reaffirmed its commitment to the Chapter 11 reorganization plan approved by the U.S. Bankruptcy Court. Initial distributions for eligible customers with claims of $50,000 or less are set to begin within 60 days of January 3, 2025. These distributions will comply with stringent know-your-customer (KYC) and regulatory requirements.

FTX has firmly denied Backpack’s claims of acquiring FTX EU, clarifying that it retains full ownership and that any repayment processes will be conducted under court-approved guidelines. With regulatory scrutiny high and misinformation rampant, FTX’s clear stance underscores its efforts to maintain transparency during its recovery process.