Backpack Exchange Clarifies Its Position Following FTX's Recent Statements on Asset Acquisition

Backpack Exchange Responds to FTX's Statements

On January 9, 2025, Backpack Exchange, a fully regulated global cryptocurrency exchange, provided a detailed response regarding recent statements made by FTX Trading LTD and FTX Recovery Trust concerning the acquisition of FTX EU's assets. This statement comes after FTX's complex sale process, which has raised questions among customers and stakeholders.

FTX, once a titan in the cryptocurrency exchange industry, has faced numerous challenges, leading to the sale of its European assets, including FTX EU. The acquisition process of these assets was initiated in early 2024, when FTX entered into an agreement to sell various European assets to former insiders. This move was sanctioned by the bankruptcy court in March 2024 and was finalized by May 2024. Payments related to this sale were made according to the established terms of the purchase, lending a semblance of structure to an otherwise tumultuous chapter in the cryptocurrency space.

However, Backpack Exchange stepped in to acquire the same European assets from these former insiders, an action already documented in German court records since June 2024. This purchase was not just a strategic move but also underscored Backpack's commitment to operational compliance and regulatory adherence, especially within the European Union.

To legitimize this transition, Backpack's acquisition required regulatory approval from the Cyprus Securities and Exchange Commission (CySec), which was granted in December 2024 after a thorough due diligence process. This regulatory oversight ensures a level of protection for customers who were previously using FTX EU, emphasizing the importance of transparency and fiscal responsibility in the cryptocurrency sector.

In its statement, Backpack addressed concerns about the transfer of responsibility regarding customer funds. It clarified that the FTX estate will not bear the responsibility for repaying any funds that may be owed to former customers of FTX EU. Upon the completion of the transfer, the rebranded Backpack EU will be solely responsible for the redistribution of former FTX EU customer funds. This change aims to facilitate a smoother transition for affected users and to reaffirm Backpack’s dedication to returning customer assets.

Furthermore, Backpack is eager to complete the transfer process swiftly so it can start the necessary procedures to return funds to those customers impacted by FTX’s earlier operations. The communication from Backpack serves to alleviate any potentially confusing narratives coming from FTX's earlier statements, demonstrating its commitment to customer service and regulatory compliance.

While FTX has previously occupied a central role in cryptocurrency trading, the evolution of its sale process underscores the dynamic nature of the market and the need for effective customer communication during such transitions. For former FTX EU users seeking clarity or who have further inquiries regarding the transition process, Backpack has invited them to reach out directly via email, ensuring that support is readily available.

As Backpack Exchange gears up to launch its European operations, which are planned to debut in the first quarter of 2025, it emphasizes its readiness to provide a comprehensive suite of crypto derivatives, including perpetual futures. This expansion reflects the company’s resilience and adaptability in the evolving landscape of cryptocurrency trading, positioning itself as a trustworthy alternative in the European market following the fallout of the FTX situation.

In summary, Backpack Exchange’s proactive response to FTX's statements reveals its commitment to regulatory compliance and transparency while striving to protect the interests of former FTX EU customers. As the cryptocurrency space continues to mature, such developments will be crucial in rebuilding trust and fostering a more secure trading environment.