By Key Points
- FTX EU acquired by Backpack Exchange for $32.7M with full regulatory approval.
- The deal focuses on repaying FTX EU customers via bankruptcy claims.
- Backpack aims to dominate Europe’s perpetual futures market by 2025.
- Leveraging MiFID II licenses, Backpack plans a robust crypto product rollout.
FTX EU, a division of the once-thriving FTX empire, has been acquired by Backpack Exchange, founded by former FTX and Alameda Research employees.
The $32.7 million deal received approvals from the Cyprus Securities and Exchange Commission (CySEC) and the FTX bankruptcy court, paving the way for new possibilities in Europe’s crypto landscape.
FTX EU was initially bought by FTX in 2021 for $323 million, but the collapse of FTX in 2022 left it entangled in legal and financial woes. Backpack Exchange’s acquisition is seen as a fresh start for the entity, prioritizing returning funds to FTX EU customers.
Armani Ferrante, the CEO of Backpack Exchange, reassured stakeholders:
“Returning customer funds is our top priority as we relaunch FTX EU under Backpack.”
The acquisition enables Backpack to distribute funds to FTX EU customers through the bankruptcy claims process, demonstrating a commitment to rebuilding trust and addressing past grievances.
Backpack just said FOCK IT and aquired FTX Europe for $32M , making the Backpack exchange the only regulated perpetual futures provider in Europe
WAO @MadLads WAO @Backpack , FOCK IT. pic.twitter.com/pDI794sSYH— Pavle 👾 (@PavleCYM) January 7, 2025
Backpack’s Strategy: Leading Europe’s Crypto Derivatives
Backpack Exchange is poised to revolutionize Europe’s crypto derivatives market. With its launch scheduled for Q1 2025, the company plans to leverage MiFID II licenses inherited from FTX EU and comply with the MiCA framework.
Its primary focus will be offering regulated perpetual futures trading, a significant gap in Europe’s current crypto landscape.
Ferrante expressed optimism about Backpack’s positioning:
“While competitors have secured derivatives licenses, none have launched perpetual futures in Europe. This gives us a unique advantage.”
Backpack’s roadmap includes the introduction of a comprehensive suite of crypto trading products. These products are expected to roll out throughout 2025, marking Backpack’s evolution from its beginnings as a non-custodial wallet provider for Solana users.
Despite setbacks, including losing operational funds during FTX’s collapse, Backpack secured $17 million in funding last year.
This financial backing has bolstered the company’s expansion plans, ensuring it is well-positioned to become Europe’s leading regulated provider of crypto derivatives.
Why FTX EU Customers Should Take Note
For FTX EU customers, this acquisition offers a glimmer of hope. Backpack Exchange’s prioritization of customer repayments aligns with its broader strategy to restore trust in crypto exchanges.
With the CySEC and bankruptcy court approvals, the company has the regulatory clarity needed to move forward confidently.
Additionally, Backpack Exchange’s MiFID II-compliant platform and commitment to the MiCA regulatory framework reflect a long-term focus on compliance and customer-centric operations.
This distinguishes it from other market players and positions Backpack as a reliable choice for crypto traders in Europe.
By acquiring FTX EU and introducing innovative offerings like regulated perpetual futures, Backpack Exchange is setting the stage for a pivotal shift in Europe’s crypto market.
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