Cryptocurrency exchange Backpack issued a statement addressing controversy surrounding its purchase of FTX EU.

Questions about the sale of FTX EU and who’s responsible for customer funds have sparked a response from Backpack Exchange, after the FTX estate’s statements left some confusion.

The issue seems to be around conflicting claims about who owns FTX EU and who’s on the hook for repaying customers. The FTX estate said that “100% of the share capital of FTX EU is held by FTX Europe AG, an FTX subsidiary,” and that the transfer of shares to former insiders Patrick Gruhn and Robin Matzke hadn’t gone through yet. But Backpack says it bought FTX EU from these insiders in a deal that was approved by Cyprus regulators in December 2024.

Backpack clarified its role in a Jan. 9 press release, confirming it will handle the repayment of funds owed to former FTX EU customers. In the press release, the exchange explained that the FTX EU entity was first sold to former insiders in early 2024, a deal approved by the FTX bankruptcy court in March 2024 and completed in May the same year.

Later, Backpack acquired these same assets, with the transfer finalized in June 2024. CySec, the Cyprus Securities and Exchange Commission, approved the deal in December 2024 following a thorough review process.

The exchange clarified that it will take full responsibility for repaying former FTX EU customers, not the FTX estate. “FTX EU will be renamed to Backpack EU and Backpack EU will be solely responsible for redistributing former FTX EU customer funds,” the company stated. Backpack plans to launch its European platform, dubbed Backpack EU, in Q1. The platform will offer a full suite of crypto derivatives, including perpetual futures, throughout the E.U.