Key Notes
- Backpack Exchange finalized the acquisition of FTX EU with court and CySEC approval.
- The acquisition allows Backpack to address gaps in licensed cryptocurrency derivatives trading in Europe.
- Former FTX EU customers will soon have access to their funds through Backpack Exchange.
Backpack Exchange has successfully acquired FTX EU, the European arm of the collapsed crypto exchange. The acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). This move represents a step in the right direction for Backpack Exchange, as it strengthens its presence in Europe and aligns with its goal of offering secure and regulated trading services across the continent.
Through this acquisition, Backpack Exchange will introduce a comprehensive range of cryptocurrency derivatives, such as perpetual futures, across the European Union. This development addresses a gap left by the absence of licensed derivatives markets in the region following the shutdown of unregulated offshore platforms operating without proper authorization.
Commitment to Compliance and Restoring Customer Trust
The CEO of Backpack Exchange, Armani Ferrante, stated that obtaining MiFID II licensing reflects the company’s commitment to adhering to strict regulatory requirements. He noted that as other global exchanges withdraw from the European Union, this move positions Backpack to provide trustworthy and compliant crypto trading services in a market that has been largely overlooked. Ferrante commented:
“As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market.”
In addition to Backpack EU, the exchange will offer seamless connectivity with traditional payment systems, enabling quick and affordable Single Euro Payments Area (SEPA) transactions and wire transfers in key currencies throughout the region. The process to reactivate the license is underway, with Backpack EU expected to launch in the first quarter of 2025. Details on user registration for the platform and asset access for former FTX EU customers will be shared as they are finalized.
Backpack Exchange will oversee the distribution of previously court-approved FTX bankruptcy claims to FTX EU users. The CEO emphasized that the exchange is committed to returning funds promptly and securely, noting the importance of restoring customer trust. Ferrante stated:
“Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible.”
Expanding the Backpack Ecosystem and Innovating Crypto Solutions
The company continues to expand its reach, serving users from more than 150 countries and boasting over $60 billion in trading volume. It is founded by former FTX and Alameda Research employees. The exchange achieved a valuation of $120 million during its Series A funding round in early 2024.
The Backpack ecosystem includes a variety of products and services, such as the noncustodial Backpack wallet, Backpack Exchange, and Mad Lads, a leading NFT community within the Solana network.
Ferrante, a former Alameda engineer, secured $20 million in late 2022 to establish Coral, a crypto infrastructure company behind Backpack’s trading and wallet technology. The funding round was co-led by Jump Crypto and FTX Ventures.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
