Cryptocurrency Exchange Backpack has issued a statement addressing the ongoing controversy surrounding its acquisition of FTX EU and the repayment of customer funds.
The situation stems from confusion over who owns FTX EU and who is responsible for reimbursing affected customers. According to the FTX estate, “100% of the share capital of FTX EU is held by FTX Europe AG, a subsidiary of FTX.” It also noted that the transfer of shares to former insiders Patrick Gruhn and Robin Matzke had not been finalized. However, Backpack maintains that it acquired FTX EU from these insiders in a deal approved by Cypriot regulators in December 2024.
In a January 9 press release, Backpack clarified its position, confirming its commitment to the repayment former FTX EU customers. The exchange explained that FTX EU was initially sold to Gruhn and Matzke in early 2024, with the transaction approved by the FTX bankruptcy court in March and completed in May 2024. Backpack later acquired these assets, finalizing the transfer in June 2024. The Cyprus Securities and Exchange Commission (CySec) approved the deal in December following a detailed review.
Backpack confirmed that it, not the FTX estate, would take full responsibility for repaying customers. “FTX EU will be renamed Backpack EU, and Backpack EU will exclusively manage the redistribution of funds to former FTX EU customers,” the company stated. Backpack plans to launch its European platform, Backpack EU, in Q1 2025, offering crypto derivatives like perpetual futures across the European Union
Kraken Offers $50,000 Fee-Free Trading Incentive to FTX Victims
Cryptocurrency exchange, Kraken is stepping up to assist former FTX clients by offering $50,000 in fee-free crypto trading as part of its support in distributing recovery funds.
In a January 9 blog post, Kraken announced the incentive allowing new clients receiving their FTX payouts through Kraken to trade up to $50,000 on Kraken Pro without incurring fees. The initiative aims to help FTX’s displaced investors regain financial footing after the collapse left hundreds of thousands without billions in customer funds.
Additionally, Kraken will provide clients with up to $105 in trading fee credits based on the amount they recover from FTX, which will be credited to their accounts once the distribution process is complete.
Once valued at $32 billion, FTX filed for bankruptcy in 2022. To facilitate fund recovery, it has partnered with Kraken and BitGo, another firm assisting in the distribution of recovered assets.
The distribution process begins in January, with initial payouts expected within 60 days of the plan’s effective date. FTX emphasized the importance of clients completing necessary steps to receive their funds, including know-your-customer (KYC) checks. Further details about additional claims will be announced in the coming months.
