Backpack Issues Response to FTX’s Recent Statement

In HANOVER, Germany on January 8, 2025, as reported by /PRNewswire/ — Backpack Exchange, a regulated international cryptocurrency trading platform, has officially addressed recent remarks from FTX Trading LTD (also known as FTX.com) and FTX Recovery Trust (“FTX”) about the recent purchase of FTX EU.

The team at Backpack Exchange acknowledges the complexity involved in the sale of FTX’s European operations and expresses gratitude towards the FTX bankruptcy group for their dedication to transparency and maximizing returns for their clients.

This public statement is to clear up any misunderstandings stemming from the FTX estate’s announcements that may have been misconstrued by FTX EU customers.

The initial news of FTX selling various European assets, including FTX EU, to certain internal buyers in February 2024 was widely circulated during the early part of 2024. This sale received the green light from the FTX bankruptcy court in March 2024, with the deal closing in May 2024 as per the agreed terms with the FTX bankruptcy estate.

Thereafter, Backpack Exchange finalized the purchase of these same European assets from the aforementioned insiders, a transaction which has been fully documented and made publicly accessible within the official German court records since June 2024.

CySec’s regulatory approval was necessary for the FTX EU business transfer due to Backpack being a licensed entity. Following an extensive due diligence process, CySec granted its approval in December 2024. Accordingly, the FTX estate is mandated to hand over the shares according to the sale and purchase agreement endorsed by the court.

We are eager to complete this share transfer, enabling us to deliver customer funds back to former clients of FTX EU, just as the FTX bankruptcy estate has intended to do.

The FTX estate will not bear the responsibility for any restitution of funds owed by FTX EU to its erstwhile customers. The remit to redistribute the funds of former FTX EU customers falls exclusively under the purview of the newly named Backpack EU.

Should there be any remaining confusion or questions from past FTX EU users, we are open to fielding them. We invite you to get in touch with us at [email protected] without hesitation.

SOURCE Backpack Exchange