FTX Denies Court Approval for Backpack’s Acquisition of FTX EU

Bankrupt cryptocurrency exchange FTX has clarified that the reported acquisition of its European arm, FTX EU, by Solana-based exchange Backpack has not received approval from the U.S. Bankruptcy Court for the District of Delaware. FTX also stated that Backpack is not authorized to manage creditor repayments, contrary to claims made by the Solana-backed platform.FTX Responds to Backpack’s Acquisition AnnouncementBackpack’s Statements DisputedOn Jan. 7, Backpack announced it had acquired FTX EU and planned to oversee creditor repayments for EU customers as part of a court-approved bankruptcy process. However, in a Jan. 8 statement, FTX refuted this, labeling the acquisition “purported” and stating the bankruptcy court had not approved it.FTX further clarified:The press release from Backpack was issued without FTX’s knowledge or involvement.FTX debtors had earlier agreed to sell FTX EU to "certain former insiders" of FTX Europe under a court-supervised settlement agreement.The indirect transfer of FTX EU to Backpack was conducted without informing FTX or the court.“Backpack has not been authorized by FTX to make any distributions to former FTX customers or other creditors,” FTX said, reiterating that it remains solely responsible for returning funds to creditors.Backpack’s Plans and ControversiesBackpack founder Armani Ferrante announced plans for the exchange to begin creditor repayments by February 2025, emphasizing that Backpack would not conduct trades in the EU until its obligations to creditors were fulfilled. Backpack also touted the acquisition as a strategic move to expand its European footprint using FTX EU’s Markets in Financial Instruments Directive and Regulation (MiFID) II License.Backpack, founded in 2022 with $20 million in funding from FTX and Jump Crypto, suffered a significant loss of $14.5 million during FTX’s 2022 collapse. Despite financial struggles, the exchange has continued operations with limited resources.FTX’s Reorganization Plan and Creditor RepaymentsFTX’s reorganization plan, which took effect on Jan. 3, 2025, enables creditors to begin receiving repayments. Customers with claims of $50,000 or less, classified as "convenience classes," will be prioritized in the initial distribution, expected within 60 days.Eligible customers must file claims through FTX’s official website to receive reimbursement.Unanswered Questions and Legal OversightBoth Backpack and FTX have declined to comment further on the acquisition and repayment disputes. FTX’s statement underscores the ongoing complexities of its bankruptcy process and highlights the importance of transparency and legal oversight in such high-stakes financial reorganizations.