- FTX opposes Backpack’s acquisition of FTX EU, citing incomplete ownership transfer.
- Backpack claims that the purchase was completed in 2024 with CySec approval.
- Backpack plans to rebrand FTX EU and handle fund distributions independently.
Anxiety and disputes related to the sale of the now defunct FTX The European arm of the exchange FTX EU to Backpack Exchange. It is a cryptocurrency trading and wallet company. Backpack collected drinking curls based on the alleged acquisition of FTX EU for $32.7 million. While FTX’s bankruptcy estate showed that the sale was not fully authorized.
Dispute over the sale of FTX to the European Union
Backpack Exchange was founded by former employees of FTX and Alameda Research and announced the acquisition as a way to provide support for derivatives in Europe. CySec approved this acquisition request in December 2023 after an extensive due diligence process.
However, FTX ownership says that the transfer of FTX EU shares to Backpack has not yet been completed. FTX ownership continues to say that the shares remain owned by FTX Europe AG. Which has FTX as a subsidiary, since the prior transfer of shares to the co-founders of FTX EU, Patrick Grün and Robin Matzke, has not yet taken place.
The Backpack supersedes these claims in the face of the favorable sale to Gruhn and Matzke that will be completed in May 2024. With cash to be paid to the FTX bankruptcy company under the terms of this purchase. Subsequently, Backpack purchased FTX EU from Gruhn and Matzke. Through records from the June 2024 period, Backpack indicates that the deal has been completed. The company confirmed that CySec approval provides legitimate approval for the transfer of ownership.
Backpack plans for FTX EU
FTX’s ownership determined that Backpack had no role in the process, which the court approved to return the funds to FTX’s clients and creditors. However, Backpack has moved forward and made plans to find ways to repay FTX E.’s creditors and acquire the cryptocurrency derivatives platform regulated under the licenses obtained during the sale. Backpack intends to rename FTX EU as Backpack EU and organize the distribution of funds to former FTX EU clients.
Former FTX EU head Patrick Gruhn confirmed the sale to Backpack and noted that change of control procedures with CySec had begun in May 2024. Gruhn added that regulatory approvals had been obtained in December. This obliges FTX Ownership to complete the transfer in accordance with the court-approved agreement. Gruhn also explained that Backpack EU will independently handle the distribution of funds to former FTX EU clients.
This dispute highlights the complexity of FTX’s bankruptcy proceedings, as conflicting claims raise questions about the ownership, regulatory approvals and future management of FTX EU assets.
Today’s top crypto news
Bitcoin Investors Pull Back as BTC Drops 2.3% as Bitcoin Tops ETF Flows for 2024