- FTX clarifies that Backpack doesn’t distribute buyer funds from FTX EU.
- FTX EU, not Backpack, is accountable for repaying funds to FTX EU's former clients.
- FTX has introduced plans to prioritize small claims within the buyer funds compensation course of.
FTX strongly opposed Backpack's acquisition of FTX EU and what Backpack mentioned would give funds to FTX EU clients. This occurred as a result of Backpack made claims that anxious former FTX EU clients. FTX additionally revealed that the Backpack announcement was not licensed and contained some deceptive statements.
FTX defined that the U.S. Chapter Court docket for the District of Delaware disapproved of Backpack's acquisition of FTX EU. Previous to this, FTX had agreed to promote FTX EU to sure former FTX Europe insiders as a part of a settlement accepted by the US Chapter Court docket. FTX has now found that these insiders are conducting a transaction to switch FTX EU to Backpack.
Funds can’t be distributed in backpacks
Backpack mentioned it may, however FTX mentioned Backpack couldn’t distribute funds to any clients or collectors, together with FTX EU clients. Reimbursements to FTX EU clients are the accountability of FTX EU itself, not Backpack. FTX clarified that Backpack was not concerned within the means of returning funds.
FTX additionally revealed that FTX EU will deal with the compensation of funds independently. The quantity and actual course of for compensation is as much as FTX EU, not FTX, and compensation will probably be decided after the sale of FTX EU is accomplished.
FTX: Backpack claims are false
FTX mentioned it has not reviewed or accepted any messages on Backpack's web site or to former FTX EU clients concerning asset restoration.
Please additionally learn: FTX Compensation Plan Reality Verify: Addressing Misinformation
FTX mentioned it’s not accountable for statements made by Backpack, together with statements made in press releases and on its web site. FTX's assertion burdened that the backpack announcement was not licensed and contained many errors.
FTX buyer compensation plan
This comes after FTX just lately introduced plans to repay buyer funds inside 60 days from the efficient date. The quantity may attain between $14.7 billion and $16.5 billion, however the first funds would go to smaller claims of $50,000 or much less.
Clients will obtain roughly 119% of the insurance coverage proceeds, together with principal and curiosity. Nonetheless, collectors with massive claims should wait longer for distribution. BitGo and Kraken handle the distribution course of and course of funds in supported jurisdictions.
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