FTX Denies Resumption Of European Operations By Backpack

Backpack’s supposed acquisition of FTX’s European division has encountered significant resistance. Indeed, bankrupt crypto exchange FTX categorically refutes Backpack’s claims regarding the acquisition of FTX EU and its ability to repay European deficits.

FTX disputes Backpack’s announcement of the takeover of its European subsidiary

A new chapter in the FTX scandal is live: the presumed acquisition of its European subsidiary, as the formal reimbursement process begins.

January 7, Backpack, an exchange based on Solana, has announced the acquisition of FTX’s European branch and its intention to take over repayment of European loans. Founder, Armani Ferrante, even undertook to suspend European operations until the repayments scheduled for February had been finalized.

However, FTX quickly denied these claims in a press release, emphasizing that no approval had been given by the Delaware Bankruptcy Court. FTX claims to have had no prior knowledge of Backpack, revealing a breakdown in communication between the parties.

FTX’s official repayment plan remains the only valid path

Parallel to this confrontation, FTX stays on course with its official reorganization plan, effective January 3, 2025. The exchange has established a partnership with BitGo and Kraken to facilitate the distribution of funds to deficits. The plan calls for priority reimbursement for “convenience classes”, including users with claims under $50,000, with a stated processing time of 60 days for the first group.

FTX insists that it remains solely responsible for the refund of its former customers, categorically rejecting any involvement of Backpack in this process.

This controversy comes at a particular time for Backpack, which had already lost $14.5 million when FTX collapsed in 2022, representing 88% of its operating funds.