FTX, the bankrupt exchange, is currently embroiled in a dispute over the sale of its European subsidiary, FTX EU, to Backpack, a crypto platform founded by former FTX employees. The controversy arose after FTX clarified in a statement on Jan. 8 that its subsidiary FTX Europe AG is the sole owner of FTX EU, refuting previous claims about the transfer of shares to former insiders.
The United States Bankruptcy Court for the District of Delaware did not approve Backpack’s acquisition of FTX EU, despite earlier agreements allowing the sale to former FTX Europe insiders as part of a settlement. FTX alleges that these insiders orchestrated an indirect transfer of FTX EU to Backpack without the company’s or the court’s knowledge.
FTX’s Disassociation
FTX made it clear that Backpack’s acquisition of FTX EU does not involve the ongoing asset recovery process for its global creditors. The exchange stated that Backpack is not obligated to return funds to customers or creditors under the US Bankruptcy Court’s jurisdiction. FTX EU is solely responsible for addressing any liabilities owed to its former customers.
FTX emphasized that it would handle customer claims related to FTX EU independently after the subsidiary’s sale is finalized. The exchange asserted that it has no responsibility for settling such claims or managing customer funds held by FTX EU. Additionally, FTX disclaimed any affiliation with Backpack’s recent communications regarding asset recovery.
Backpack’s Response
In response to FTX’s claims, Backpack maintained that the acquisition of FTX EU was legitimate and compliant with regulatory guidelines. Backpack’s CEO, Armani Ferrante, stated that the transaction involved FTX EU’s founders and was approved by the Cyprus Securities and Exchange Commission after a thorough review process. Ferrante clarified that the acquisition did not involve the bankruptcy estate.
According to Ferrante, “FTX EU was sold to its original founders and approved by the bankruptcy court, free and clear. Backpack bought the company not from the estate, but from the FTX EU founders.” He affirmed that Backpack is now solely responsible for managing FTX EU’s obligations to its former customers and is not involved in FTX’s bankruptcy proceedings.