Fri. May 24th, 2024

Backpack Exchange: Bankruptcy lawyer says FTX only plans to fully repay customers and will not restart the exchange

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After the exit of FTX, the defunct exchanges’ formal executives launches Backpack Exchange.

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“The costs and risks of creating a viable exchange from what Mr. Bankman-Fried left in the dumpster were simply too high.”, FTX legal team.

FTX, the now-defunct cryptocurrency exchange, clarified in a January 31st hearing at the United States Bankruptcy Court for the District of Delaware that its restructuring plan does not include a relaunch of the company as their priority is to fully repay its customers as there are no investors prepared to provide the required capital for the launch of FTX 2.0.

During the hearing, FTX attorney Andy Dietderich, representing the law firm Sullivan and Cromwell, conveyed that the exchange tentatively aimed to fully reimburse users and creditors, emphasizing that this objective wasn’t a guaranteed outcome.

The bankruptcy lawyer added that “Based on our results to date and current projections, we anticipate filing a disclosure statement in February describing how customers and general unsecured creditors with allowed claims will eventually be paid in full,” said Dietderich. “No investor is ready to commit the needed capital to a restart of the offshore exchange, nor has a buyer emerged for that exchange as a going concern.”

Backpack Launches

Following the exit of FTX and no plans in place for FTX 2.0. Backpack, the new exchange reportedly launched by formal FTX exec, went public this year. It has listed only SOL and SPL tokens.

Backpack is a non-custodian wallet and a centralized exchange service provider. Armani Ferrante, the CEO of Backpack, believes the exchange is here to fix the current flaws of many exchanges and that of the defunct FTX.

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