FTX Slams Backpack’s Deceptive FTX EU Fund Distribution Claims

• FTX clarifies that Backpack doesn’t distribute buyer funds from FTX EU.  
• FTX EU, not Backpack, is liable for repaying funds to former FTX EU prospects.  
• FTX publicizes a plan to prioritize smaller claims within the buyer fund reimbursement course of.

FTX got here out robust towards Backpack’s takeover of FTX EU and the way it stated funds could be given to FTX EU prospects. This occurred as a result of Backpack made claims that anxious former FTX EU prospects. FTX additionally revealed that Backpack’s announcement wasn’t authorized and had a number of deceptive statements.

The US Chapter Court docket for the District of Delaware didn’t okay Backpack’s acquisition of FTX EU, FTX defined. Earlier than this, FTX had agreed to promote FTX EU to sure former insiders of FTX Europe as a part of a settlement authorized by the U.S. Chapter Court docket. FTX has now discovered that these insiders made a deal to switch FTX EU to Backpack.

Backpack Can’t Distribute Funds

Regardless that Backpack stated it may, FTX stated that Backpack can’t distribute funds to any prospects or collectors, together with these from FTX EU. FTX EU itself is liable for repaying FTX EU prospects, not Backpack. FTX made it clear that Backpack isn’t concerned within the course of for returning funds.

FTX additionally clarified that FTX EU will deal with the reimbursement of funds by itself. The quantities to be repaid and the precise course of are as much as FTX EU, not FTX, and any reimbursement shall be decided as soon as the sale of FTX EU is accomplished.

FTX: Backpack’s Claims Are Mistaken

FTX stated that it didn’t have a look at or approve Backpack’s web site and any messages about asset restoration for former FTX EU prospects.

Learn additionally: FTX Compensation Plan Reality Test: Addressing Misinformation

FTX stated it’s not liable for something Backpack says, together with any statements made of their press launch or on their web site. FTX’s assertion harassed that Backpack’s bulletins weren’t authorized and had many inaccuracies.

FTX’s Plan to Repay Clients

This comes after FTX not too long ago laid out its plans to repay buyer funds inside 60 days of the efficient date. It may attain between $14.7 billion and $16.5 billion, however the first spherical of funds will go to smaller claims of $50K or much less.

They stated that prospects will obtain roughly 119% of their claims, together with principal and curiosity. Nonetheless, collectors with bigger claims should wait longer for his or her distributions. BitGo and Kraken will handle the distribution course of and can deal with payouts in supported jurisdictions.