FTX Disputes Backpack Exchange's Assertion Regarding Acquisition of FTX EU
In a recent turn of events, Backpack has taken over FTX EU as part of a settlement agreed upon by certain former insiders of FTX Europe. However, it's important to note that this transaction was not approved by the Delaware Bankruptcy Court.
The announcement was made without FTX's knowledge or involvement, and the company has since disclaimed any responsibility for the accuracy or completeness of any information contained in Backpack's press release, website, or other communications.
Backpack's statement about acquiring FTX EU and compensating former clients has been labeled as "misleading" by FTX liquidators. The liquidators have provided clarification on certain statements made by Backpack, stating that the company has no participation in the court-approved process of returning funds to FTX customers.
Despite this, Backpack has launched a claims sale marketplace, allowing FTX EU creditors, particularly those in restricted jurisdictions like China, to sell their bankruptcy claims to third-party buyers for faster liquidity. This initiative aims to facilitate fund distributions to European customers under the Backpack EU brand.
However, the liquidators dispute Backpack's characterization that the acquisition and the claims sale platform provide an official or finalized resolution to the FTX EU bankruptcy claims. The official FTX Recovery Trust continues to manage creditor repayments under bankruptcy court oversight, and Backpack’s marketplace operates independently from these formal proceedings.
The liquidators likely view Backpack's messaging as potentially confusing creditors about the legal status and security of their claims, since Backpack’s transactions involve selling claims at a discount to institutional buyers rather than direct repayment of creditors per court-approved schedules.
In summary, Backpack currently owns FTX EU and operates a claims sale platform to enable creditors to monetize their claims sooner. However, FTX’s liquidators caution that Backpack’s statements may misrepresent the legal and official status of these transactions, given that the formal FTX creditor repayment process is still ongoing and controlled by the bankruptcy estates.
- The unexpected acquisition of FTX EU by Backpack has resulted in a significant shift in the technology industry's finance landscape, signifying a new player entering the business arena.
- As Backpack delves into the business of technology, they are leveraging their newly acquired assets in the finance sector, aiming to revolutionize the process of creditor repayments in the industry.
