Backpack Exchange Acquires FTX EU to Launch Regulated Crypto Trading in Europe

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*Backpack Exchange has won approval to take over FTX EU, the European branch of the collapsed cryptocurrency exchange FTX. This acquisition, which also has the green light from the Cyprus Securities and Exchange Commission (CySEC), marks a strategic advance for Backpack Exchange. It enhances their presence in Europe and brings them one step closer to their goal of providing secure and regulated trading services throughout the continent.*

With this takeover, Backpack Exchange plans to introduce a wide variety of cryptocurrency derivative products, including perpetual futures contracts, throughout the European Union. This expansion aims to fill the void created by the lack of licensed derivatives markets in the region, which resulted from the shutdown of unauthorized offshore platforms offering these services without proper licensing.

Commitment to Compliance and Restoring Customer Trust

Armani Ferrante, CEO of Backpack Exchange, expressed that acquiring MiFID II licensing underscores our dedication to upholding stringent regulatory standards. He pointed out that with many other international exchanges leaving the European Union, this decision places Backpack in a prime position to offer reliable and compliant cryptocurrency trading services within an underserved market. Ferrante added:

With numerous global entities leaving the European Union, our decision to obtain a MiFID II license showcases our commitment to upholding top-tier regulatory norms. This move represents a crucial advancement in providing crystal-clear, secure, and regulated cryptocurrency trading to an underrepresented European market.

Beyond Backpack EU, the platform will provide effortless compatibility with conventional payment networks, facilitating swift and cost-effective transactions within the Single Euro Payments Area (SEPA) and wire transfers in major regional currencies. The license reactivation procedure is currently being initiated, with a targeted launch date for Backpack EU set for the first quarter of 2025. Further information about registration for the platform and asset availability for previous FTX EU users will be disclosed upon completion.

1. Backpack Exchange will manage the distribution of previously court-approved FTX bankruptcy claims to FTX Europe users.
2. The exchange’s CEO stressed that they are focused on ensuring prompt and secure fund returns, with the aim of regaining customer trust.
3. Ferrante stated: “Backpack Exchange is responsible for distributing the approved FTX bankruptcy claims to our EU users, while prioritizing quick and safe returns to rebuild trust among our customers.”

Ensuring customer refunds is essential for reestablishing faith in the industry, and we at Backpack are dedicated to quickly and securely returning the funds of FTX EU customers.

Expanding the Backpack Ecosystem and Innovating Crypto Solutions

This company keeps broadening its global presence, catering to users across more than 150 nations and recording a massive trading volume exceeding $60 billion. It was established by professionals who previously worked at FTX and Alameda Research. The exchange successfully secured a valuation of $120 million during its Series A funding round held in early 2024.

In simple terms, the Backpack system offers several items like the self-managed Backpack digital wallet, the Backpack trading platform, and Mad Lads, an influential Non-Fungible Token (NFT) group operating within the Solana blockchain system.

In the last months of 2022, Ferrante – previously an engineer at Alameda – managed to raise $20 million to launch Coral, a company specializing in crypto infrastructure. This funding round was jointly led by Jump Crypto and FTX Ventures, who backed the development of Backpack’s trading platform and digital wallet technology.

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2025-01-07 14:36