On January 8, 2025, FTX provided a clear explanation about the rumors that Backpack entities had taken over FTX EU Ltd. This statement was issued to correct misinformation in Backpack’s press release from January 7, which implied their role in recovering assets for previous FTX EU customers.
FTX Highlights Inaccuracy in Backpack’s FTX EU Acquisition Statements
In a recent public statement, FTX clarified some remarks made by Backpack about the supposed acquisition of FTX EU. FTX explained that as of January 7, 2025, Backpack released their announcement without any prior knowledge or input from FTX. The exchange contends that the press release from Backpack contained numerous errors, which could potentially mislead investors and other stakeholders.
As an analyst, I’d rephrase it as follows: I want to clarify that the entire share capital of FTX EU remains under the ownership of FTX Europe AG, a subsidiary of our company, FTX. Previously, we had agreed to sell FTX EU to certain insiders from FTX Europe as part of a settlement. However, this transfer has not been approved by the U.S. Bankruptcy Court overseeing our Chapter 11 process. Furthermore, it’s important to note that we were unaware of any indirect sale of FTX EU shares to Backpack prior to this week.
Bankruptcy Court and Asset Recovery Process
As a researcher, I’d like to clarify an essential point: Backpack, being out of operation, plays no part in the U.S. Bankruptcy Court-approved process for redistributing funds to creditors, which includes FTX EU’s previous clients. It is important to emphasize that FTX EU itself bears the responsibility for identifying and returning any owed funds to its customers. The court’s Chapter 11 plan does not grant authority to the organization to distribute funds to any creditors or former customers.
As a crypto investor, I want to clarify that when FTX EU gets sold, it will be responsible for determining and handling any outstanding balances owed to its customers, not the exchange or the Bankruptcy Court. This means that Backpack is not liable for repaying EU customer funds.
Additionally, the closed-down platform voiced worries over the precision and thoroughness of the data provided in Backpack’s documents. The report recommended that all parties should solely trust the authentic FTX announcements.
Initial Distributions Under Bankruptcy Plan
The closed trading platform has shared information about its Chapter 11 reorganization plan, approved by the U.S. Bankruptcy Court. This plan was implemented on January 3, 2025, with the initial distribution date for eligible claimants set on the same day. It’s anticipated that distributions to these claimants will be made within approximately two months, given regulatory conditions are met.
At the same time, the exchange restated its dedication to following the court’s procedures and maintaining clear communication with creditors.
The latest advancements are due to conjecture in the media about a potential pardon for Sam Bankman-Fried, the creator of the collapsed FTX Exchange, by U.S. President Joe Biden. Biden’s recent pardon of his own son has fueled speculation that SBF might receive similar clemency.
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2025-01-09 03:35