tl;dr
The bankrupt FTX exchange disputes the sale of its European subsidiary, FTX EU, to Backpack, a crypto platform founded by former FTX employees. FTX claims that the transfer of FTX EU shares to former insiders occurred without approval from the United States Bankruptcy Court. FTX also distances itsel...
FTX, a bankrupt exchange, is disputing the sale of its European subsidiary, FTX EU, to Backpack, a crypto platform founded by former FTX employees. FTX claims that the transfer of FTX EU shares to former insiders occurred without approval from the United States Bankruptcy Court. FTX also states that Backpack is responsible for addressing liabilities owed to former customers.
In response, Backpack maintains that the acquisition of FTX EU was legitimate and approved by regulatory authorities, emphasizing that it does not involve the bankruptcy estate and is not responsible for fund distributions for international FTX customers.
FTX clarified that its subsidiary FTX Europe AG wholly owns FTX EU and that the anticipated transfer of FTX EU shares to former insiders did not occur as previously disclosed. The United States Bankruptcy Court for the District of Delaware did not approve Backpack’s acquisition of FTX EU.
FTX further distanced itself from any connection between Backpack and the ongoing asset recovery process for its global creditors. The bankrupt exchange stressed that it bears no responsibility for settling such claims or managing customer funds held by FTX EU.
In response, Backpack maintained that the acquisition of FTX EU was legitimate and completed in compliance with regulatory guidelines. The transaction involved FTX EU’s founders and was cleared by the Cyprus Securities and Exchange Commission after a year-long review process.