FTX Says Backpack’s Acquisition of EU Arm Was Not Approved by Court

FTX has clarified that Backpack’s purported acquisition of their Cyprus division has not been approved by the court and Backpack does not have authorization to distribute funds to FTX customers.

The company stated that the press release by Backpack was issued without their knowledge or involvement and that the related website contains misleading information about FTX EU, FTX, and the US bankruptcy process.

While FTX Debtors have approved the acquisition of FTX EU by former insiders, the court has not yet approved the deal. Backpack had allegedly agreed to purchase FTX EU for $32.7 million, but it seems that the agreement may not be finalized.

Backpack had planned to offer cryptocurrency derivatives and perpetual futures in the European market under the Cyprus licence acquired from FTX EU.