Backpack Exchange, a cryptocurrency exchange, finds itself to be in trouble right now with the ongoing saga of FTX EU. The US-based FTX released a statement today, January 9, 2025, which the US based exchange disputes Backpack’s FTX EU ownership claim.
The Troubled History
Back in March 2024, the US court allowed FTX EU to be sold back to its original European owners as a “free and clean” deal. This sale was supposed to be a clean break, with the US-based FTX debtors giving up the control.
With entry of Backpack into the picture, this is were the things got complicated, the exchange bought FTX EU from its European owners. After a year of reviews, European regulators approved the sale in December 2024. Backpack officially took over FTX EU on January 7, 2025.
Now today, just days later, the US-based FTX debtors suddenly claimed that they still owned FTX EU, despite the court-approved sale. This unexpected twist has caused a state of confusion and has raised questions about who’s really in charged of FTX EU.
US FTX Debtors Issue a Statement
Just days after Backpack’s announcement, the US based FTX debtors issued a statement today January 9, 2025, and raised questions about the legality of the transactions.
The bankrupt exchange in the statement states that Backpack’s claim to own FTX EU is false. FTX claims that it still owns 100% of FTX EU and the court did not approve Backpack’s acquisition.
Moreover, the debtors distanced themselves from any financial obligations related to FTX EU’s funds. They asserted that FTX EU alone is responsible for repayment, and will not allow Backpack to make distributions to FTX EU customers.
All of this just means that there is a huge confusion over who controls FTX EU and how customers will get their money back.
The time at which all of this has come up, has raised may eyebrows and has sparked speculations about the modus operandi behind the actions of the US debtors.
Bloomberg Clarifies, But Questions Remain
Bloomberg quickly stepped in and confirmed that Backpack officially owns FTX EU and Backpack will be the one looking after the repayments. Even after this clarification, the claims made by debtors has raised concerns about potential delays and further legal challenges in the whole repayment process.
Will the Battle Continue?
This entire situation has raised a sense of fears amongst the creditor. Many question whether US-based debtors are acting this way to challenge the sale and delay reimbursements to FTX EU creditors.
All the eyes will now be upon Backpack and FTX EU’s European creditors, who now eagerly await for a clear path amid this confusion.
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