Backpack Exchange, founded by former FTX employees, has acquired FTX EU. This deal, approved by the FTX bankruptcy court and CySEC, marks a bold step to revive regulated crypto trading services in Europe. Backpack will use FTX EU’s MiFID II license to offer a comprehensive range of cryptocurrency derivatives.
No other regulated entity currently offers such derivatives in the EU. Armani Ferrante, CEO of Backpack Exchange, emphasizes that adhering to regulations is crucial for rebuilding trust in the crypto industry. The platform plans to launch in Q1 of 2025, offering seamless integration with traditional payment systems like SEPA transfers.
Moreover, Backpack plans to distribute court-approved FTX bankruptcy claims to FTX EU customers, focusing on euro-denominated funds. This acquisition aims to bring secure and transparent crypto trading back to the European market, described by Ferrante as “underserved.”
The acquisition also clarifies the distribution of funds related to FTX’s bankruptcy, reassuring FTX EU customers that their crypto claims remain with the FTX bankruptcy estate. Backpack will handle only euro funds.
Emails with detailed instructions for affected customers will be sent soon. While the FTX EU revival, under Backpack’s ownership, marks a positive step for the European crypto scene, global expansion is evident from a recent license secured in Dubai.
With its MiFID II license and solid regulatory framework, Backpack is set to fill a critical gap in the market. This initiative reflects a significant move to make Europe a hub for regulated crypto activities, rebuilding confidence after major collapses like FTX.
