Backpack Exchange officially announced the completion of the acquisition of FTX EU’s asset. 

The acquisition process, which included regulatory scrutiny and approvals, was finalized in June 2024, with the Cyprus Securities and Exchange Commission (CySec) granting approval later in December.

The recent clarification comes after the FTX estate issued a strong statement against Backpack’s FTX EU acquisition claims.

FTX Clarifies Its Position

FTX has raised concerns over the clarity of the situation. In a recent press release, FTX clarified that Backpack’s acquisition of FTX EU has not been approved by the U.S. Bankruptcy Court. Furthermore, Backpack has not been authorized by FTX to distribute any funds to FTX customers, including those who held accounts with FTX EU.

FTX emphasized that the court-approved transfer of FTX EU shares to Backpack did not occur prior to the official announcement made by Backpack on January 7, 2025. As per FTX, the U.S. Bankruptcy Court has not been involved in the indirect transfer of FTX EU to Backpack.

In addition, FTX has not reviewed or approved any communication by Backpack regarding asset recovery for former FTX EU customers.

“FTX expressly disclaims any responsibility for the accuracy or completeness of any information contained in Backpack's press release, website or other communications released by Backpack, including with respect to the statements by Backpack highlighted above,” FTX noted in the press release. 

Backpack’s Response

Backpack has strongly defended its position, stating that the acquisition was conducted in full compliance with both legal and regulatory frameworks. The company clarified that the transfer of FTX EU assets from insiders to Backpack was conducted under the supervision of the bankruptcy estate and that all necessary payments to the FTX bankruptcy estate were completed as per the purchase agreement.

Acquisition Timeline and Process

Backpack’s acquisition of FTX EU assets has unfolded over several months. The initial sale of FTX’s European assets, including FTX EU, was approved by the U.S. Bankruptcy Court in early 2024. This sale was part of the court's efforts to settle the assets of the bankrupt cryptocurrency exchange. 

The transaction, which closed in May 2024, saw FTX insiders acquire the assets before Backpack subsequently purchased them from these insiders. This deal was officially completed in June 2024, as evidenced by publicly available court records in Germany.

However, the process did not end there. As a regulated entity, Backpack’s acquisition required approval from CySec, the financial regulatory body in Cyprus. 

After a rigorous due diligence process, CySec granted its approval in December 2024. This approval marked the official transfer of ownership to Backpack, with the company now fully in control of the European division of FTX.

It further reassured former FTX EU customers that the company would be responsible for redistributing any owed funds, with the new entity, Backpack EU, assuming full responsibility for these payments.

The Future of Backpack EU

The newly acquired platform, which will operate under the name Backpack EU, is set to launch in the first quarter of 2025. As a fully regulated exchange, Backpack EU will offer a comprehensive suite of cryptocurrency derivatives, including perpetual futures, across the European Union.

Backpack has emphasized its commitment to providing a secure and transparent trading platform for its customers.