Backpack Exchange illegally attempts to take over FTX EU assets

In a recent dispute within the cryptocurrency sector, the FTX bankruptcy estate objected to the sale of FTX EU to Backpack, which is operated by former employees of FTX and Alameda. This controversial acquisition was announced without the consent or involvement of FTX, which raised concerns about Backpack's authority to manage customer funds. The FTX estate asserted that Backpack has no connection to the processes established by the U.S. Bankruptcy Court regarding the return of funds owed to creditors and customers of FTX. On March 2024, the U.S. Bankruptcy Court had sanctioned the sale of FTX EU to Patrick Gruhn and Robin Matzke, prominent figures from FTX’s European expansion efforts. However, Backpack claimed it purchased FTX EU from these founders. The deal was officially recorded and received approval from the Cyprus Securities and Exchange Commission (CySec) in June 2024, which added further complexity to the already intricate bankruptcy proceedings. Backpack announced plans to repay former FTX EU creditors and demonstrated intentions to establish a regulated crypto derivatives service using the licenses inherited from the acquisition. However, FTX categorically denied authorizing Backpack to make any distributions to customers or creditors. They emphasized that the bankruptcy process is distinctly separate, and any funds distribution related to FTX EU remains under their purview. Former FTX EU director Patrick Gruhn clarified that although FTX wants to establish a clear boundary regarding its relationship with Backpack, the renamed Backpack EU would indeed be responsible for redistributing funds to the clients. This indicates the legal and operational tensions within the restructuring efforts of the collapsed FTX, highlighting the difficulties in managing customer trust and creditor relationships in the aftermath of its bankruptcy.