The post FTX Disputes Backpack’s Role in FTX EU Fund Repayment appeared on BitcoinEthereumNews.com.

FTX clarifies that Backpack does not distribute customer funds from FTX EU.   FTX EU, not Backpack, is responsible for repaying funds to former FTX EU customers.   FTX announces a plan to prioritize smaller claims in the customer fund repayment process. FTX came out strong against Backpack’s takeover of FTX EU and how it said funds would be given to FTX EU customers. This happened because Backpack made claims that worried former FTX EU customers. FTX also revealed that Backpack’s announcement wasn’t approved and had several misleading statements. FTX issues a statement regarding @Backpack acquisition of FTX EU and distribution of FTX Customer funds FTX Debtors sold FTX EU to certain former insiders of FTX Europe, didn’t know about the sale to Backpack until this week Backpack has not been authorized to make any… pic.twitter.com/dyiruTXzgG — Sunil (FTX Creditor Champion) (@sunil_trades) January 8, 2025 The United States Bankruptcy Court for the District of Delaware didn’t okay Backpack’s acquisition of FTX EU, FTX explained. Before this, FTX had agreed to sell FTX EU to certain former insiders of FTX Europe as part of a settlement approved by the U.S. Bankruptcy Court. FTX has now found out that these insiders made a deal to transfer FTX EU to Backpack. Backpack Can’t Distribute Funds Even though Backpack said it could, FTX said that Backpack can’t distribute funds to any customers or creditors, including those from FTX EU. FTX EU itself is responsible for repaying FTX EU customers, not Backpack. FTX made it clear that Backpack isn’t involved in the process for returning funds. FTX also clarified that FTX EU will handle the repayment of funds on its own. The amounts to be repaid and the exact process are up to FTX EU, not FTX, and any repayment will be determined once the sale of…

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Filed under: News - @ January 9, 2025 1:23 pm