Backpack made waves in the cryptocurrency space by announcing it had acquired FTX EU, a key subsidiary of the embattled FTX Group. However, FTX swiftly responded, exposing Backpack’s claims as misleading and confusing, raising doubts about the company’s role in repaying affected customers.
FTX’s Clarification on Ownership of FTX EU
FTX, in a statement, clarified that it still holds 100% of the shares of FTX EU through its subsidiary, FTX Europe AG. The company confirmed that Backpack’s claim to have acquired FTX EU was made without their approval or knowledge. While there was a prior agreement to transfer shares of FTX EU to former FTX Europe insiders as part of a U.S. Bankruptcy Court settlement, the transfer has yet to be completed. FTX also revealed that if any insiders had indirectly transferred ownership to Backpack, it was done without proper notification to FTX or the U.S. Bankruptcy Court.
The FTX Debtors today provided clarification on certain statements by Backpack relating to Backpack’s purported acquisition of FTX EU. Read more here: https://t.co/WVwfNXBKRj
— FTX (@FTX_Official) January 8, 2025
Backpack’s Misleading Claims Regarding Customer Repayments
Backpack’s press release also stated its intent to assist in repaying FTX EU customers. FTX, however, swiftly clarified that Backpack has no authority to handle customer repayments. FTX made it clear that any repayment obligations to FTX EU customers will be determined by FTX EU itself, once its sale is finalized. FTX also reaffirmed that Backpack is not involved in any customer reimbursement processes.
We're fully focused on working with all the relevant parties to return customer funds in the EU.
— Armani Ferrante (@armaniferrante) January 7, 2025
It's our top priority.
If you have an FTX EU claim, we'll announce next steps shortly. https://t.co/Wy2NBbSkRc
Disclaiming Backpack’s Communications
FTX distanced itself from Backpack’s communications, including its press release and website. The company explicitly stated that it has not reviewed or approved the information shared by Backpack and warned that the misleading statements could create confusion around FTX EU’s ownership and the ongoing U.S. bankruptcy proceedings.
Also Read: FTX Payment Plan Kicks Off: When Can Users Expect Their Funds?
FTX’s Recovery Plan and Customer Distributions
As part of its ongoing Chapter 11 reorganization plan, FTX confirmed that customer repayments will proceed under the oversight of the U.S. Bankruptcy Court. Initial distributions for customers with claims of $50,000 or less will begin within 60 days of January 3, 2025, in compliance with regulatory and KYC (Know-Your-Customer) protocols.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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