Bankrupt cryptocurrency exchange FTX has denied allegations that cryptocurrency exchange Backpack has acquired its European subsidiary FTX EU.
FTX said the deal has not been approved by the U.S. Bankruptcy Court in Delaware.
Backpack announced on January 7, 2025 that it had acquired FTX EU as part of a court-approved bankruptcy process. Backpack claimed that it would oversee the repayment of creditors of FTX EU clients.
At the time, Backpack founder Armani Ferrante said the exchange would not begin trading operations in Europe until it had guaranteed payment to creditors, with the aim of starting payments as early as February.
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FTX calls the acquisition “alleged”
However, on January 8, 2025 press releaseFTX rejected these assertions, calling the acquisition “alleged.” FTX confirmed that the bankruptcy court did not impose sanctions on it.
Furthermore, FTX clarified that Backpack was not authorized to distribute funds to it creditors to Defunct exchange. He also said That backpack A press release was issued without the stock exchange’s knowledge or involvement.
FTX revealed that it had previously agreed to sell FTX EU to “certain former insiders” at FTX Europe as part of a settlement overseen by the bankruptcy court.
The exchange added that it recently learned that these insiders had transferred FTX EU to Backpack without prior notification to FTX or the court.
“Neither FTX nor the US Bankruptcy Court were notified of the indirect sale of FTX EU to Backpack Before that The company said this week.
FTX also clarified that it retains exclusive authority over customer payments. “Backpack is not authorized by FTX to make any distributions to any of FTX’s clients or other creditors,” FTX said.
The backpack has developed a takeover As a means To expand its presence in Europe with the FTX EU license for the Markets in Financial Instruments Directive and Regulation (MiFID II).
The backpack has obtained its FTX EU license and its MiFID II license.
Our first priority is to return all client funds in Euros on behalf of FTX, followed by the rollout of a full range of spot, margin and futures trading products.
Cryptocurrency trading is making a comeback in Europe
pic.twitter.com/ExxYFufZHj
– Backpack
(@backpack) January 7, 2025
the The company, founded by developer Solana Ferrante in 2022, previously received $20 million in funding from FTX and Jump Crypto. Despite losing $14.5 million during the FTX crash of 2022, Backpack continued operations with limited funds. Finance.
FTX’s reorganization plan, which took effect on January 3, allows creditors to begin receiving repayment. The initial refunds are scheduled to go to “convenience categories,” including claims of $50,000 or less, within 60 days.
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FTX settles lawsuit with Bybit
Last year, FTX went bankrupt It reached $228 million Settlement with cryptocurrency exchange Bybit to recover funds needed to pay off former FTX clients and creditors.
under Settlement termsFTX will redeem $175 million in digital assets held by Bybit, plus an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit’s investment arm.
FTX originally launched a $1 billion lawsuit against Bybit and Mirana in late 2023. It alleged that these entities used special privileges and “VIP” access to preemptively withdraw $327 million in digital assets and cash in the days before FTX’s downfall.
FTX Bankruptcy Estate Set a goal To begin paying customers’ premiums by early 2025.
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The post FTX Refuses to Approve EU Acquisition by Backpack Amid Bankruptcy Proceedings appeared first on 99Bitcoins.