This is part of the Lightspeed newsletter. To read the full version, go to Subscribe.
On Tuesday, we reported that Backpack acquired FTX EU in a $32.7 million deal. The next day, FTX statement Revealed the announcement of the backpack. Then in the press release ownBackpack revealed FTX clarification.
This is probably how companies fight.
Here's the crux of it all: The remnants of FTX say they had no knowledge of Backpack's acquisition of FTX EU, abdicate their responsibility to repay FTX EU customers, and can't verify whether what Backpack says is true. said. Backpack responded by saying that much of the story leading up to the acquisition of FTX EU has already been reported, and that it intends to rename FTX EU to Backpack EU before it begins paying claims to customers.
The dueling press releases appear to stem from the bad blood FTX still has with FTX EU. FTX sued The company's European arm is trying to recoup some of the $323 million Sam Bankman Fried spent on the startup. The case ended in a settlement in which FTX EU's original founders Patrick Groen and Robin Matzke bought back FTX EU for $32.7 million. Backpack has since acquired FTX EU from Mr. Groen and Mr. Matzke, and the ownership stake appears to be pending transfer.
Backpack's initial reports did not reveal the entire sequence of events. releaseBut that doesn't really change much. Whether Backpack bought FTX EU from FTX or from someone who bought it from FTX, the fundamental fact remains that Backpack owns the asset.
Still, the sale itself is still a bit strange, at least in my opinion. Backpack said it acquired FTX EU in April 2024 for $32.7 million. This came just a month or two after FTX EU's founders bought back the company at that very price as part of a lawsuit settlement. At that time, FTX was reportedly concluded that “no other buyer would agree to purchase FTX EU.”
It doesn't seem very business savvy that Backpack paid the full $32.7 million for a replacement item that clearly no one wanted, only to have it sold in a court settlement. Couldn't they have demanded millions of dollars off the list price just to get it out of Gruhn and Matske's hands? And startups like Backpack simply pay more: Projects reportedly lost much of its funding in the FTX collapse, raising just $17 million in its last funding round. Where did the $32.7 million spent on FTX EU come from? Backpack did not respond to my request for comment on the financial aspects of the deal.
In any case, FTX seems to have noted the details in the Backpack press release, but there doesn't seem to be much doubt about its general content. But we're talking about FTX here, so it's only natural that things don't go as smoothly as planned.
Start your day with the best cryptocurrency insights from David Canellis and Katherine Ross. Subscribe to Empire Newsletter.
Join Ben Strack, Casey Wagner, and Felix Jauvin as we explore the increasingly important intersection between cryptocurrencies, macroeconomics, policy, and finance. Subscribe to the Forward Guidance newsletter.
Get alpha information including market highlights, charts, degen trade ideas, governance updates and more straight to your inbox with the 0xResearch newsletter.
The Lightspeed newsletter delivers all things Solana to your inbox daily. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
