Recent developments have unfolded regarding the ownership of FTX EU, as FTX.com and the FTX Recovery Trust have publicly challenged Backpack’s claims of acquiring FTX EU. These assertions have been labeled as misleading and confusing, prompting serious questions about Backpack’s involvement in the customer repayment process. FTX has taken the initiative to clarify the actual ownership status of FTX EU, the court’s role, and the genuine repayment procedures.
FTX Clarification On Backpack’s Claims
On January 7, 2025, Backpack issued a press release suggesting it had acquired FTX EU. In response, FTX swiftly clarified that it retains full ownership of FTX EU through its subsidiary, FTX Europe AG. This announcement was made without FTX’s consent or awareness. While there was a prior arrangement to transfer FTX EU shares to former insiders of FTX Europe under a U.S. Bankruptcy Court settlement, this transfer remains incomplete.
FTX emphasized that if these former insiders had indirectly transferred FTX EU to Backpack without notifying FTX or the U.S. Bankruptcy Court, such actions would be unauthorized. FTX remains committed to collaborating with all involved parties to ensure the return of customer funds in the EU. It is a priority to provide clear guidance for those with FTX EU claims, with further instructions to be announced soon.
Furthermore, FTX has confirmed that neither the U.S. Bankruptcy Court nor FTX has sanctioned Backpack’s acquisition claims, leaving Backpack without any official endorsement.
Backpack’s Misleading Statements
Backpack had asserted in its press release that it would aid in the return of funds to former FTX EU customers. However, FTX has categorically stated that Backpack lacks the authority to handle customer repayments. The responsibility for determining any amounts owed to FTX EU customers rests solely with FTX EU, pending the completion of its sale. FTX has also clarified that it bears no responsibility for any repayments linked to FTX EU.
Disclaiming Backpack’s Communications
FTX has distanced itself from Backpack’s communications, including press releases and website content, asserting that it has neither reviewed nor approved any of the information disseminated by Backpack. The company has cautioned that Backpack’s statements could potentially cause confusion regarding FTX EU and the U.S. bankruptcy proceedings.
Despite Backpack’s claims of enhancing its European presence through the acquisition of FTX EU and leveraging the MiFID II License, FTX has made it clear that such assertions are unfounded.
Updates on FTX’s Recovery Efforts
In alignment with the U.S. Bankruptcy Court-approved Chapter 11 reorganization plan, FTX is set to initiate initial distributions for customers with claims of $50,000 or less within 60 days of January 3, 2025. This process will adhere to rigorous know-your-customer and regulatory standards, ensuring a transparent and compliant repayment process.
As FTX continues its recovery efforts, staying informed about these developments is crucial for all stakeholders involved. The company’s commitment to transparency and customer focus remains at the forefront of its operations.
