Crypto exchange Backpack has acquired FTX EU, the European division of the collapsed FTX exchange, marking a major step in its European expansion plans. The deal received approval from both the FTX bankruptcy court and Cyprus Securities and Exchange Commission.
The acquisition positions Backpack to offer regulated crypto derivatives and other financial products to European customers through a MiFID II license. This move comes at an opportune time as other exchanges pull back from the European market, creating space in the regulated crypto derivatives sector.
"This acquisition demonstrates our commitment to meeting the highest regulatory standards as we work to bring transparent, secure, and regulated crypto trading to an underserved European market," said Backpack CEO Armani Ferrante.
As part of the deal, Backpack EU will manage the distribution of FTX bankruptcy claims to former FTX EU customers. The platform will also integrate SEPA and wire transfer payment systems to facilitate transactions across Europe.
The company aims to reactivate its EU license and launch operations in the first quarter of 2025. This expansion follows Backpack's resilient journey since its 2022 founding by Ferrante, a former Alameda Research employee. Despite losing 88% of its operating funds ($14.5 million) during FTX's collapse in November 2022, the team persevered with limited resources.
The acquisition represents a notable development in Europe's crypto landscape, potentially filling the gap in regulated crypto derivatives trading while addressing the needs of former FTX EU customers.