{"id":34400,"date":"2025-01-09T10:47:12","date_gmt":"2025-01-09T10:47:12","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=34400"},"modified":"2025-01-09T10:47:12","modified_gmt":"2025-01-09T10:47:12","slug":"ftx-denies-approval-of-ftx-eu-acquisition-by-backpack-amid-bankruptcy-proceedings","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=34400","title":{"rendered":"FTX Denies Approval Of FTX EU Acquisition By Backpack Amid Bankruptcy Proceedings"},"content":{"rendered":"

Bankrupt cryptocurrency exchange FTX denied claims that crypto exchange Backpack has acquired its European subsidiary, FTX EU. <\/span><\/p>\n

FTX said that the deal has not been approved by the US Bankruptcy Court in Delaware. <\/span><\/p>\n

Backpack announced on 7 January 2025 that it had acquired FTX EU as part of the court-approved bankruptcy process. Backpack claimed that it would oversee creditor repayments to FTX EU customers. <\/span><\/p>\n

At the time, Backpack founder Armani Ferrante said the exchange would not commence trading operations in Europe until it had ensured repayments to creditors, aiming to begin payouts as early as February.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n

FTX Calls the Acquisition \u201cPurported\u201d<\/span><\/h2>\n

However, in a 8 January 2025 <\/span>press release<\/span><\/a>, FTX dismissed these assertions, calling the acquisition \u201cpurported.\u201d FTX asserted that it had not been sanctioned by the bankruptcy court. <\/span><\/p>\n

Furthermore, FTX clarified that Backpack has not been authorized to distribute funds to <\/span>creditors of<\/span> the defunct exchange.<\/span> It also said <\/span>that Backpack\u2019s<\/span> press release was issued without the exchange\u2019s knowledge or involvement.<\/span><\/p>\n

FTX revealed that it had previously agreed to sell FTX EU to \u201ccertain former insiders\u201d of FTX Europe as part of a settlement overseen by the bankruptcy court. <\/span><\/p>\n

The exchange added that it recently learned these insiders had transferred FTX EU to Backpack without prior notification to FTX or the court.<\/span><\/p>\n

\u201cNeither FTX nor the US Bankruptcy Court was made aware of the indirect sale of FTX EU to Backpack <\/span>prior to<\/span> this week,\u201d the company said.<\/span><\/p>\n

FTX also clarified that it retains exclusive authority over customer repayments. \u201cBackpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors,\u201d FTX said.\u00a0<\/span><\/p>\n

Backpack has positioned the acquisition <\/span>as a means<\/span> to expand its presence in Europe using FTX EU\u2019s Markets in Financial Instruments Directive and Regulation (MiFID II) license.<\/span><\/p>\n

Backpack has acquired FTX EU and its MiFID II License.<\/p>\n

Our first priority is to return all customer EURO funds on behalf of the FTX estate, followed by rolling out a full suite of spot, margin, and futures trading products.<\/p>\n

Crypto perps trading is coming back to Europe pic.twitter.com\/ExxYFufZHj<\/a><\/p>\n

\u2014 Backpack (@Backpack) January 7, 2025<\/a><\/p>\n\n

The<\/span> company, founded in 2022 by Solana developer Ferrante, previously received $20 million in funding from FTX and Jump Crypto. Despite losing $14.5 million during FTX\u2019s 2022 collapse, Backpack has continued operations with limited <\/span>funding<\/span>.<\/span><\/p>\n

The reorganization plan for FTX, which took effect on 3 January, allows creditors to start receiving repayments. Initial reimbursements are set to go to \u201cconvenience classes,\u201d including claims of $50,000 or less, within 60 days.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>3 Experts Predict: How High Can Bitcoin Go In 2025?<\/span><\/a><\/strong><\/p>\n

FTX Settles Lawsuit With Bybit<\/span><\/h2>\n

Last year, the FTX bankruptcy estate <\/span>reached a $228 million<\/span><\/a>\u00a0settlement with the\u00a0cryptocurrency\u00a0exchange Bybit to recover funds for repaying former FTX customers and creditors.<\/span><\/p>\n

Under the\u00a0<\/span>terms of the settlement<\/span>, FTX will retrieve $175 million in digital assets held by Bybit, and an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit\u2019s investment arm.<\/span><\/p>\n

FTX originally launched a $1 billion lawsuit against Bybit and Mirana in late 2023. It alleged that these entities used special privileges and \u201cVIP\u201d access to pre-emptively withdraw $327 million in digital assets and cash in the days leading up to FTX\u2019s downfall.<\/span><\/p>\n

The FTX bankruptcy estate <\/span>set a goal<\/span> to begin customer repayments by early 2025.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>Former FTX Digital Markets Co-CEO Ryan Salame Sentenced To 7.5 Years In Prison<\/span><\/a><\/strong><\/p>\n

The post FTX Denies Approval Of FTX EU Acquisition By Backpack Amid Bankruptcy Proceedings<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bankrupt cryptocurrency exchange FTX denied claims that crypto exchange Backpack has acquired its European subsidiary, FTX EU. FTX said that the deal has not been approved by the US Bankruptcy Court in Delaware. Backpack announced on 7 January 2025 that it had acquired FTX EU as part of the court-approved bankruptcy process. Backpack claimed that […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-34400","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/34400"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34400"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/34400\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}