The leading crypto platform, Backpack Exchange, said it has acquired FTX EU, the European arm of the defunct FTX Exchange. This acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), reflects the exchange’s move to dominate Europe’s regulated crypto trading market. Notably, the exchange plans to offer innovative products, including crypto derivatives, across the European Union by early 2025.
Backpack Exchange announced that it has completed the acquisition of FTX EU, aiming to fill the gap left by unregulated offshore exchanges exiting Europe. As a MiFID II-licenced entity, the new Backpack EU will focus on transparency and compliance to the region’s underserved crypto sector. Besides, the exchange eyes to bring perpetual futures through this acquisition, marking a significant milestone in the EU’s crypto space.
Backpack CEO Armani Ferrante lauded the acquisition, saying that this move would ensure European users gain access to secure and regulated trading solutions. He stated:
“As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market.”
Meanwhile, Backpack EU remained committed to customer restitution alongside product innovation. The exchange said that it would start distribution of previously court-approved FTX bankruptcy claims to FTX EU customers. Ferrante said:
“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 fast and as safely as possible.”
Backpack EU plans to activate its license and begin operations in the first quarter of 2025. The exchange promises updates on how new users can sign up and how FTX EU customers can reclaim their assets through official channels. Meanwhile, this acquisition is a strategic milestone in Backpack’s global expansion. It not only opens doors to a regulated derivatives market but also highlights the firm’s commitment to restoring trust in the crypto ecosystem.
By acquiring FTX EU, Backpack Exchange positions itself as a key player in Europe’s crypto space, ensuring compliance while offering innovative solutions to traders. As it prepares to go live, the platform’s success could pave the way for a more transparent and regulated crypto future in the region.
This development from Backpack Exchange comes as FTX’s $16 billion Claims Payout gained attention from the market participants. For context, FTX has initiated payments to creditors under its Chapter 11 Plan of Reorganization, effective January 3, 2025. Initial payments to Convenience Class creditors will be made within 60 days.
On the other hand, another recent FTX development that has gained significant attention is the reduced jail term of its co-founder Ryan Salame for his role in Sam Bankman-Fried’s multi-billion dollar fraud scheme. The developments mark significant progress in resolving the fallout from FTX’s collapse in November 2022, bringing relief to affected creditors and accountability to those involved.
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