The ownership of FTX’s European operations remains a contentious issue, despite Dubai-based Backpack Exchange’s claim of having acquired the unit. Backpack, a crypto trading platform founded by former employees of FTX and Alameda Research, announced the $32.7 million purchase of FTX EU, highlighting plans to enhance its derivatives offerings in Europe. However, the US-based FTX estate disputes the finality of the deal.
Conflicting Claims
Backpack Exchange asserts that the acquisition was completed last month, following approval from the Cyprus Securities and Exchange Commission (CySEC). According to Backpack, the purchase was made from FTX EU’s co-founders, Patrick Gruhn and Robin Matzke, who allegedly gained ownership of the unit earlier this year. Backpack claims all payments were made in accordance with the agreed terms.
However, FTX’s estate tells a different story. In a press release on Wednesday, FTX stated that the transfer of FTX EU shares to Gruhn and Matzke had not yet been finalized. The estate clarified that “100% of the share capital of FTX EU is still held by FTX Europe AG, an FTX subsidiary.”
A Legal and Regulatory Quagmire
Gruhn and Matzke contend that the transaction with Backpack was completed and that Cyprus’ regulatory approval obligates FTX’s estate to transfer the shares. Gruhn noted that his lawyer informed FTX of CySEC’s approval but received no response. Backpack reiterated its stance, emphasizing that the sale followed all regulatory guidelines and agreements approved by the court.
The FTX estate, meanwhile, continues to challenge this narrative, asserting that the process of transferring ownership is incomplete. Lawyers for FTX have yet to comment on the matter.
Implications for the Crypto Landscape
This ownership dispute comes as FTX’s bankruptcy estate works to resolve claims and recover assets following the dramatic collapse of Sam Bankman-Fried’s crypto empire. The outcome of this disagreement could have significant implications for creditors, former employees, and Backpack’s expansion plans in Europe.
As the legal wrangling continues, stakeholders across the cryptocurrency space will be watching closely to see how this chapter unfolds.
