FTX disputes Backpack’s acquisition of FTX EU, citing incomplete ownership transfer.
Backpack claims the purchase was finalized in 2024 with CySec approval.
Backpack plans to rebrand FTX EU and handle fund distributions independently.
Concern about and disputes regarding the sale of now-defunct FTX exchange’s European arm FTX EU to Backpack Exchange. Which is a cryptocurrency trading and wallet company. Backpack had amassed drinking curls based on the purported acquisition of FTX EU by $32.7 million. While the FTX bankruptcy estate showed that the sale had not been fully authorized.
Dispute Over FTX EU Sale
Backpack Exchange is founded by former employees of FTX and Alameda Research and announced the acquisition as a way of providing a prop of derivatives in Europe. CySec approved the request of this acquisition in December 2023 after an extensive due diligence process.
However, the FTX estate does say that the transfer of shares of FTX EU to Backpack is unfinished. The FTX estate continues to argue that the shares remain owned by FTX Europe AG. Which has FTX as a subsidiary, since the prior transfer of shares to the co-founders of FTX EU, Patrick Gruhn and Robin Matzke, hasn’t yet transpired.
Backpack substitutes these claims counter to the affirmative sale to Gruhn and Matzke being finalized in May 2024. With cash paid to the FTX bankruptcy estate under the terms of that purchase. Subsequently, Backpack purchased FTX EU from Gruhn and Matzke. By records from the June 2024 period, Backpack indicates the deal reached completion. The company asserted that CySec’s approval provided a legitimate approval for the transfer of ownership.
Backpack’s Plans for FTX EU
The FTX estate defined that Backpack had no role in the process, which was approved by the court for the return of funds to the customers and creditors of FTX. Nonetheless, Backpack has come forward and made plans to find ways to repay creditors of FTX E. And take on a regulated crypto derivatives platform under the licenses acquired during the sale. Backpack intends to rename FTX EU as Backpack EU and to organize the distribution of funds to former FTX EU customers.
Former FTX EU head Patrick Gruhn confirmed the sale to Backpack and noted that the change of control proceedings with CySec were initiated in May 2024. Gruhn added that regulatory approvals were secured in December. Which is obligating the FTX estate to complete the transfer as per the court-approved agreement. Gruhn also clarified that Backpack EU would independently handle the distribution of funds to former FTX EU customers.
This dispute highlights the complexity of the FTX bankruptcy proceedings, as conflicting claims raise questions about ownership, regulatory approvals, and the future management of FTX EU assets.
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