FTX's Bankruptcy Estate Challenges Backpack Exchange's Acquisition

Key Points

The FTX bankruptcy estate states that the sale of FTX EU to Backpack was not authorized.
Backpack claims to have regulatory approval from the Cyprus regulator for the acquisition, which was completed in December 2024.

Article Overview

The FTX bankruptcy estate has raised concerns regarding the sale of FTX EU to Backpack, a cryptocurrency exchange founded by former employees of FTX and Alameda. The bankruptcy estate has declared that Backpack is not authorized to disburse any funds to FTX customers or other creditors, reinforcing the assertion that Backpack’s press release regarding the sale was made without FTX's knowledge.

In March 2024, the bankruptcy court sanctioned the sale of FTX EU to Patrick Gruhn and Robin Matzke, both involved in FTX’s European expansion. Backpack contends it acquired FTX EU from them, a transaction backed by CySec approval.

As per Backpack, the forthcoming transfer of FTX EU to Backpack EU will allow them to start returning customer funds to FTX EU clients.

Quote: "As a licensed entity, the transfer of the FTX EU entity was subject to regulatory approval by CySec... We look forward to the completion of the transfer so that... we can begin to return customer funds to former FTX EU customers."
Translation: As a licensed entity, the transfer of the FTX EU entity was subject to regulatory approval by CySec... We look forward to the completion of the transfer so that... we can begin to return customer funds to former FTX EU customers.