Backpack Exchange responded to FTX’s complaint hours after the bankrupt exchange claimed its acquisition of the Cyprus entity was fraudulent. Backpack’s latest press release states that the company has already acquired FTX EU from former insiders and that the transaction is “completed and reflected in official German court records published from June 2024 onwards.” “It has been done,” he emphasized.
Is the transaction completed?
FTX sold Cyprus-based FTX EU to “certain former insiders” in February 2024, and the transaction was “approved by the FTX Bankruptcy Court in March 2024 and subsequently completed in May 2024.” did”. Backpack further noted that the FTX Bankruptcy Foundation has already received payment pursuant to the purchase agreement.
Backpack’s latest retaliatory press release states that “Backpack purchased the same European assets from the same insiders.”
It also pointed out that the Cyprus Securities and Exchange Commission (CySEC), which regulates FTX EU, approved the transaction last month after a “lengthy due diligence process”.
“Following such approval, FTX Real Estate is obligated to transfer the shares as set forth in the court-approved sales agreement,” Backpack added.
However, FTX recently claimed that “neither FTX nor the U.S. Bankruptcy Court were informed of the indirect sale of FTX EU to Backpack prior to this week.”
Backpack also did not discuss obtaining approval from the U.S. Bankruptcy Court. However, since the “former insider” has already received that approval, it is unclear whether similar approval will be required again.
Will another crypto drama be born?
Backpack first publicly announced ownership of FTX EU earlier this week. Coindesk said it paid $32.7 million to acquire the Cyprus-regulated company, allowing it to offer derivatives products across the European Economic Area.
FTX also noted in its previous clarification that Backpack did not have the authority to make distributions to FTX customers or creditors, stating that “FTX EU will return funds owed to former FTX EU customers.” shall be solely responsible for this,” he added.
However, Backpack asserted ownership of FTX EU and stressed that it “looks forward to completing the transfer so that, like the FTX Bankruptcy Foundation, we can begin returning customer funds to former FTX EU customers.” .
“FTX Estate is not responsible for repaying any funds owed by FTX EU to former FTX EU customers,” Backpack added. “FTX EU will be renamed Backpack EU, and Backpack EU will be solely responsible for the redistribution of former FTX EU customer funds.”
This article was written by Arnab Shome from www.financemagnates.com.
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