Lucía Peña
Backpack’s recent announcement of acquiring FTX EU and taking responsibility for distributing court-approved FTX bankruptcy claims has drawn sharp criticism from the FTX bankruptcy estate. According to a statement released Wednesday, the estate denied prior knowledge of Backpack’s announcement and questioned the accuracy of several claims made by the crypto platform, founded by former FTX and Alameda Research employees.
The FTX estate clarified that the U.S. Bankruptcy Court for the District of Delaware had not authorized Backpack’s acquisition of FTX EU. It emphasized that FTX EU remains under the ownership of FTX Europe AG and that a planned transfer of shares to former FTX Europe insiders had yet to occur. While these insiders agreed to transfer FTX EU to Backpack, the estate claimed it was not informed of the deal in advance.
Moreover, the estate stressed that Backpack is not authorized to distribute funds to FTX creditors or customers. It reiterated that FTX EU alone is responsible for refunding its former clients after its sale is finalized. The estate also distanced itself from Backpack’s communications and asset recovery platform, disclaiming any responsibility for related activities.
Backpack Responds to the FTX Estate’s Concerns
In response to the FTX estate’s assertions, Backpack issued a statement on Thursday, seeking to clarify its role and actions. The platform acknowledged the complexities surrounding FTX EU’s sale but expressed gratitude for the estate’s efforts to prioritize customer recovery.
Learn: What is Cryptocurrency Exchange?
Backpack maintained that the FTX estate sold FTX EU to former insiders in February 2024, with court approval. This transaction was completed in May 2024. In June 2024, Backpack purchased the assets from these insiders, as documented in German court records. Regulatory approval for the transfer of FTX EU shares to Backpack was granted by the Cyprus Securities and Exchange Commission in December 2024.
“Following regulatory approval, the FTX estate is bound to transfer the shares in line with the court-approved sales agreement,” Backpack stated. The platform expressed optimism about finalizing the transfer to begin refunding former FTX EU customers.
Once the transfer is complete, FTX EU will be rebranded as Backpack EU, which will assume full responsibility for returning funds to former FTX EU customers.
Backpack’s Background and Plans
Backpack, a crypto exchange and digital wallet platform, was founded by former FTX and Alameda Research employees Can Sun and Armani Ferrante. The company achieved a valuation of $120 million during its Series A funding round in early 2024.
The upcoming Backpack EU division is set to launch within the first quarter of 2025, offering crypto derivatives alongside its existing services.
Context of FTX’s Bankruptcy
FTX filed for bankruptcy in November 2022 amid revelations of financial mismanagement. Former CEO Sam Bankman-Fried was convicted of seven criminal charges, including wire fraud and conspiracy, in November 2023. He is currently serving a 25-year prison sentence.
These developments underline the ongoing complexity surrounding the FTX bankruptcy proceedings and efforts to recover customer funds. As the situation unfolds, both Backpack and the FTX estate aim to ensure a resolution that prioritizes affected customers.
