FTX Disputes Backpack Exchange's Assertion Regarding Acquisition of FTX EU
In a recent turn of events, the sale of FTX's European assets, including FTX EU, to a group of former insiders under the name Backpack EU, has been met with controversy. It's important to clarify that this sale was not approved by the Delaware Bankruptcy Court, a fact that has raised legal doubts about the legality of the asset transfer to Backpack [1].
Despite this, Backpack has launched a claims marketplace to assist FTX creditors, including former FTX EU clients in China and other restricted jurisdictions. However, it's crucial to note that the FTX bankruptcy estate has publicly questioned the legality of the asset transfer to Backpack [1].
Meanwhile, FTX's role in compensating former FTX EU clients is indirect. The Delaware Bankruptcy Court recently approved the release of $1.9 billion of reserve funds to enable the next round of customer payouts from the FTX recovery process. These payouts, scheduled to start around September 30, 2025, will be directed through approved service providers like BitGo, Kraken, and Payoneer [2][3][4].
FTX itself will not manage individual account access or payment updates. Instead, users must complete KYC verification and tax documentation to participate. FTX also warns against scams and emphasizes it will not be involved in post-disbursement asset management [2][3][4].
In summary, FTX's involvement in compensating former FTX EU clients is indirect and primarily through court-approved distributions managed by third-party providers, not through the Backpack platform or direct asset sales to it [1][2][3][4].
Armani Ferrante, CEO of Backpack, emphasized that FTX holds no responsibility for compensating any former users of its European platform.
| Aspect | Status | |-------------------------------|------------------------------------------------------------------------------------------| | Sale of FTX EU to Backpack | Not approved by Delaware court; legality questioned by FTX bankruptcy estate | | Backup's marketplace purpose | Provides a neutral, fee-free platform for former FTX creditors to sell claims | | FTX court-approved payouts | $1.9B reserve release approved for next customer distributions by Sept 30, 2025 | | FTX's role in compensation | No direct management of individual payouts; coordination via third-party escrow providers | | Claim verification deadline | August 15, 2025 for eligibility in next distribution |
[1] Source 1 [2] Source 2 [3] Source 3 [4] Source 4
- Despite the legal doubts surrounding the sale of FTX EU to Backpack, the business industry's technological advancement has enabled Backpack to launch a claims marketplace for FTX creditors, offering a platform where former FTX EU clients in China and other restricted jurisdictions can sell their claims.
- Amidst the controversy and questions over the legality of the asset transfer to Backpack, the finance sector has played a significant role in the FTX recovery process, as theDelaware Bankruptcy Court has approved the release of $1.9 billion of reserve funds to support the next round of payouts to FTX customers, directed through approved service providers.
