Backpack Acquires FTX EU, Targets Europe’s Underserved Market
Backpack Exchange, the cryptocurrency trading platform founded by former FTX and Alameda Research employees Armani Ferrante and Tristan Yver, has acquired FTX EU, the European arm of the now-defunct FTX.
The acquisition, which was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a bold move to reintroduce regulated cryptocurrency trading services in Europe.
Backpack Exchange acquires FTX EU
According to Bloomberg, Backpack achieved Valuation: US$120 million in Series A funding in early 2024. Through this acquisition, The company has positioned itself as a key player in the European market. The deal allows Backpack to leverage FTX EU’s MiFID II license to offer a full suite of cryptocurrency derivatives, including perpetual contracts futures.
This is an important step as there are currently no regulated entities in the EU offering such derivatives. many offshore exchanges quit market due to regulatory crackdown. Armani Ferrante, CEO of Backpack Exchange, emphasized the importance of regulation in rebuilding trust in the crypto industry.
“Becoming a MiFID II licensed entity demonstrates our commitment to meeting the highest regulatory standards,” Ferrante point out in a press release.
He added that the acquisition aims to provide secure and transparent cryptocurrency trading to the European market, which he described as “underserved.” The platform is scheduled to go live in the first quarter of 2025 and will provide seamless integration with traditional payment systems. Such systems include Single Euro Payments Area (SEPA) transfers and low-cost wire transfer payments in major currencies.
More details on onboarding new users and facilitating access to funds for FTX EU clients will be announced soon. Notably, Backpack EU will also distribute court-approved FTX bankruptcy claims to FTX EU clients. Nonetheless, it will focus on euro-denominated funds.
“Customer redress is a critical step in rebuilding trust and confidence in the industry,” Ferrante added.
Impact of Bankruptcy on FTX Creditors
The acquisition of FTX EU also clarifies the allocation of funds related to FTX’s bankruptcy. FTX creditor activist Sunil Kavuri ask In X (Twitter), how the change will affect their distribution preferences.
Backpack’s Ferrante clarified that the cryptocurrency claims (not euros) of FTX EU customers who had pending cryptocurrency withdrawals at the time of bankruptcy remain part of the FTX bankruptcy estate. For these cryptocurrency claims, customers should continue to file claims directly with FTX Assets.
“FTX EU has been sold by the FTX bankruptcy estate and no longer belongs to the bankruptcy estate. Customers can only receive euro funds directly from Backpack EU.” Ferrante explained.
Backpack executives also said an email with detailed instructions will be sent to affected customers soon. Regarding when FTX EU users will receive repayments, Ferrante said that while Backpack will be ready in February, it does not solely depend on the exchange’s decision.
“We have to work with other parties, like banks, but we can’t guarantee how fast they will be. We are working with everyone with the greatest urgency,” Ferrante ensure.
It is worth noting that Repayment scheduled for early March. At the same time, the acquisition of FTX EU marks another milestone in Backpack’s global layout. expansion. The company has previously received a key license from the Dubai Virtual Asset Regulatory Authority (yes). Taken together, these reflect its ambitions to operate across multiple jurisdictions.
Backpack has a MiFID II license and a strong regulatory framework, aiming to create a safe trading environment while launching innovative products such as crypto derivatives. The move could address a critical gap in European markets as unregulated exchanges retreat.
Additionally, the resurgence of FTX EU under Backpack’s stewardship marks a positive step for the European cryptocurrency industry. The collapse of major players such as FTX has shaken investor confidence, and a reopening under the Backpack brand could position Europe as a hub for regulated cryptocurrency activity.
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