Bankrupt crypto exchange FTX has clarified the acquisition of its European arm, FTX EU, by the Backpack platform has not been authorized by the bankruptcy court. In addition, Backpack has no authority to distribute funds to FTX's creditors.
On January 7, Backpack announced the acquisition of FTX EU and promised to assume responsibility for repaying EU customers as part of the court-approved bankruptcy process.
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Backpack's founder, Armani Ferrante, had stated that they would not resume operations in the EU until they could pay FTX's creditors, which they expected to do in February.
However, FTX issued a statement on January 8 stating that Backpack's "purported" acquisition of FTX EU had not yet been approved by the US Bankruptcy Court for the District of Delaware.