Nikolas Sargeant
FTX EU, the European arm of the now-infamous crypto exchange that collapsed in late 2022, has been acquired by Backpack Exchange following regulatory and legal approval. The acquisition, which received the green light from both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a pivotal step in the restructuring of FTX’s global operations.
Backpack Exchange, a platform founded by former FTX and Alameda Research employees, will now oversee the distribution of court-approved bankruptcy claims to FTX EU users. The company’s CEO, Armani Ferrante, emphasized the importance of customer restitution in rebuilding trust within the crypto industry. "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 quickly and safely as possible," he stated.
Backpack Exchange, which was valued at $120 million in its Series A financing round in early 2024, is positioning itself for expansion across Europe. The platform, which has already secured a MiFID II license to operate in the European Union, is preparing to offer a full suite of crypto derivatives, including perpetual futures, throughout the region. The new offering, called Backpack EU, is set to go live in the first quarter of 2025 and will integrate SEPA payments and wire transfers in major European currencies.
The acquisition and Backpack’s EU expansion come at a time when the European Union is ramping up its regulatory oversight of the crypto industry through the Markets in Crypto-Assets (MiCA) regulation. MiCA aims to create a robust framework for virtual asset service providers, ensuring consumer protection and increasing market transparency.
Founded by former FTX and Alameda Research engineers, Backpack Exchange has built its technology stack around its crypto trading and wallet platform, which was developed by Coral, a crypto infrastructure company co-founded by Ferrante. Despite facing significant financial losses after FTX’s collapse, Ferrante and his team are committed to rebuilding the platform and the broader crypto ecosystem.
FTX filed for bankruptcy in November 2022, after its founder Sam Bankman-Fried was arrested and charged with multiple criminal offenses. Bankman-Fried was convicted in November 2023 on seven criminal counts, including wire fraud and conspiracy, and was sentenced to 25 years in prison.
The acquisition of FTX EU by Backpack Exchange represents a new chapter for both the company and the broader European crypto market, with plans to bring innovative financial products and services to a region that continues to evolve within a rapidly changing regulatory landscape.
