FTX Denounces Unauthorized Sale of Its European Subsidiary

The FTX affair continues to keep the crypto community on edge. This notably refers to the recent sale of the European subsidiary of the company to Backpack. This triggered a heated controversy in the crypto world. Today, Backpack claims to have received approval from the Cypriot regulator. For its part, FTX states that this sale was not authorized by the American court in charge of the bankruptcy. So what is the bottom line of the story?

https://twitter.com/FTX_Official/status/1877112756953809114

Sale of FTX EU: Backpack in the crosshairs of FTX

At the beginning of the week, Backpack announced the acquisition of FTX EU. Even better, the company claims to be able to reimburse the European creditors of the bankrupt crypto company.

A twist in the situation: the American bankruptcy court quickly reacted by questioning the legitimacy of this transaction. According to FTX, this sale has indeed not been validated by the court. In other words, Backpack does not have permission to proceed with any distribution of funds to creditors.

Founded by former employees of the fallen crypto company, Backpack asserts that the acquisition was validated by the Cypriot regulator CySEC in December 2024. The firm even claims to want to uphold its commitments to former clients of FTX EU, starting with reimbursements as early as February.

Crypto creditors still facing uncertainty

The American bankruptcy court emphasizes that only the crypto exchange FTX is authorized to manage the distribution of assets within the scope of the reorganization plan validated in early January 2025. In this context, Backpack defends itself by stating that:

• the sale was validated outside of American procedures,
• their goal is to provide a regulated cryptocurrency exchange platform in Europe.

The question remains in suspense: Will Backpack be able to honor its reimbursement promises or will creditors have to wait for another judicial decision?

The future of FTX EU creditors remains uncertain in the face of this legal crypto battle. The final decision of the court could well redefine the contours of transactions in the world of cryptocurrency.