The ownership of FTX EU has become a contentious issue as Backpack Exchange and the FTX Recovery Trust clash over the legitimacy of the platform’s acquisition.
The Timeline of FTX EU
Backpack Exchange, a centralized cryptocurrency platform, announced on Jan. 8 that it had acquired FTX EU after receiving regulatory approval from the Cyprus Securities and Exchange Commission (CySEC) in December 2024.
FTX EU, initially known as Digital Assets AG (DAAG), was acquired by FTX in 2021 for $323 million. However, following FTX’s bankruptcy in November 2022, FTX EU became entangled in legal proceedings.
In February 2024, FTX EU was sold back to DAAG co-founders Patrick Gruhn and Robin Matzke for $32.7 million as part of a court-approved settlement designed to recover creditor funds. This transfer was finalized in May 2024.
Backpack Exchange claims it acquired these same assets from the co-founders in June 2024.
Backpack’s Stand
Backpack Exchange insists that the FTX estate must comply with the court-approved sale and transfer of shares, as per the finalized agreement.
The platform has outlined plans to use its European entity to provide cryptocurrency derivative services across the EU, including perpetual futures trading.
Summary Review: The ongoing dispute highlights the complexities of resolving asset ownership in the wake of FTX’s bankruptcy. Backpack Exchange’s acquisition of FTX EU, following regulatory approval and court-backed sales agreements, could play a significant role in reshaping crypto services in Europe. However, the clash with the FTX Recovery Trust adds another layer of legal challenges to an already intricate situation.
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