FTX Clarifies Certain Statements by Backpack Regarding Backpack's Purported Acquisition of FTX EU

Backpack Has No Involvement in U.S. Bankruptcy-Approved Process for Returning Funds to FTX Creditors

FTX Not Responsible for Repayment of Any Funds Owed by FTX EU to its Former Customers

WILMINGTON, Del., Jan. 8, 2025 /PRNewswire/ -- FTX Trading Ltd. (d/b/a. FTX.com) and the FTX Recovery Trust (collectively "FTX") today clarify certain statements made by the Backpack entities ("Backpack") regarding Backpack's purported acquisition of FTX EU Ltd ("FTX EU") and return of funds to former FTX EU customers.

FTX is aware that, on January 7, 2025, Backpack issued a press release announcing its acquisition of FTX EU ("Backpack Press Release").  The Backpack Press Release was issued without the knowledge or involvement of FTX.  In addition, the Backpack Press Release, as well as a related website established by Backpack contain numerous potentially confusing statements regarding FTX EU, FTX and the U.S. bankruptcy process.

• As of today, 100% of the share capital of FTX EU is held by FTX Europe AG, an FTX subsidiary. The previously announced transfer of the FTX EU shares to certain former insiders of FTX Europe (as described below) has not yet occurred.
  
  
• The United States Bankruptcy Court for the District of Delaware (the "U.S. Bankruptcy Court") did not approve the acquisition of FTX EU by Backpack. As previously announced, under the supervision of the U.S. Bankruptcy Court, the FTX Debtors agreed to sell FTX EU to certain former insiders of FTX Europe in connection with a settlement agreement. FTX has now been informed that these former insiders have agreed to the indirect transfer of FTX EU to Backpack. Neither FTX nor the U.S. Bankruptcy Court was made aware of the indirect sale of FTX EU to Backpack prior to this week.
  
  
• Backpack has not been authorized by FTX to make any distributions to any FTX customers or other creditors, including any former FTX EU customers. FTX EU is solely responsible for the return of any funds it owes to former FTX EU customers.
  
  
• Backpack has no involvement whatsoever in the U.S. Bankruptcy Court-approved process for returning funds to any FTX customers and other creditors.
  
  
• Any amounts owed by FTX EU to its former customers have not and will not be determined by FTX or the U.S. Bankruptcy Court. FTX EU holds customer funds belonging to customers of FTX EU. Any amounts due by FTX EU to its customers will be determined solely by FTX EU following completion of a sale of FTX EU. FTX will not be responsible for the repayment of any funds owed by FTX EU to its former customers and expressly disclaims any responsibility for such repayment by FTX EU.
  
  
• FTX has not reviewed or approved a website established by Backpack regarding asset recovery for former FTX EU customers, or reviewed or approved any other communications by Backpack. FTX expressly disclaims any responsibility for the accuracy or completeness of any information contained in Backpack's press release, website or other communications released by Backpack, including with respect to the statements by Backpack highlighted above.

Additional Information about FTX Recoveries and Distributions

As previously announced, FTX's U.S. Bankruptcy Court-approved Chapter 11 plan of reorganization (the "Plan") became effective on January 3, 2025. The initial distribution record date for holders of allowed claims in the Plan's convenience classes (the "Initial Distribution") was also January 3, 2025. The Initial Distribution is expected to occur within 60 days of January 3, 2025, with participation subject to know-your-customer and other distribution requirements. U.S. Bankruptcy Court filings, including the Plan and other documents related to the U.S. Bankruptcy Court proceedings, are available at https://cases.ra.kroll.com/FTX/.

Advisors

The FTX Recovery Trust is represented by Sullivan & Cromwell LLP as legal counsel and is assisted by Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel and Landis Rath & Cobb LLP as Delaware counsel.

SOURCE FTX