TechFlow news, January 9 — According to Cointelegraph, the bankrupt crypto exchange FTX stated that the acquisition of its European arm, FTX EU, by cryptocurrency exchange Backpack has not yet been approved by the bankruptcy court, and Backpack is not authorized to distribute funds to FTX creditors.
On January 7, Backpack announced it had acquired FTX EU and said it would assume responsibility for repaying EU customers as part of a court-approved bankruptcy process. Armani Ferrante, founder of Backpack, said his exchange would not conduct any trading activities in the EU until it could repay FTX creditors, adding that it might be ready as early as February.
However, in a statement on January 8, FTX said the transaction whereby Backpack "claims" to have acquired FTX EU has not occurred and has not received approval from the U.S. Bankruptcy Court for the District of Delaware. It added that all statements released by Backpack were made without FTX's knowledge. The FTX debtors previously agreed, under a settlement agreement supervised by the bankruptcy court, to sell FTX EU to certain "former insiders" of FTX Europe, but were only informed that these former insiders had agreed to indirectly transfer FTX EU to Backpack. FTX also emphasized that Backpack has not been granted authority to manage creditor repayments.
Previous report, Backpack acquires FTX EU, becoming Europe's sole compliant perpetual futures trading platform.
