- Backpack Exchange has finalized the acquisition of FTX EU, the European branch of the failed FTX platform, previously under bankruptcy protection.
- Backpack will be the first regulated EU platform to offer crypto-derivatives and integrate traditional payment systems.
Blockchain firm Backpack Exchange has completed the acquisition of FTX EU, the European arm of the once-prominent cryptocurrency exchange FTX, which collapsed into bankruptcy in November 2022.
Backpack has acquired FTX EU and its MiFID II License.
Our first priority is to return all customer EURO funds on behalf of the FTX estate, followed by rolling out a full suite of spot, margin, and futures trading products.
Crypto perps trading is coming back to Europe 🇪🇺 pic.twitter.com/ExxYFufZHj
— Backpack 🎒 (@Backpack) January 7, 2025
This acquisition, approved by both the Cyprus Securities and Exchange Commission (CySEC) and the U.S. Bankruptcy Court, marks a significant expansion for Backpack Exchange in the European market.
The firm’s strategic plan focuses on providing comprehensive crypto-derivatives trading services across the European Union (EU), a service that has been lacking regulated offerings in this market until now.
Backpack’s acquisition is not just about seizing the assets of FTX EU, but also about integrating its customer base and addressing the need for regulated financial services within the crypto space.
Notably, Backpack will become the first regulated exchange in the EU to offer a variety of trading products, including perpetual futures contracts, which have become a cornerstone of crypto derivatives markets in other jurisdictions.
This regulatory approval enables Backpack to fill the gap left by FTX’s closure, offering a safe, transparent platform for crypto traders in the EU.
In addition to expanding its product offerings, Backpack plans to integrate traditional financial systems. This includes supporting faster and more cost-efficient transfers via SEPA (Single Euro Payments Area), which will allow EU-based customers to make near-instant transactions with lower fees compared to traditional banking systems.
This integration is expected to make Backpack’s platform a seamless solution for users who wish to bridge the gap between traditional financial assets and cryptocurrencies.
The license acquired by Backpack in this transaction is particularly significant, as it is the same license held by major financial institutions such as Goldman Sachs. This license empowers Backpack to manage a broader array of financial assets beyond cryptocurrencies, including stocks, bonds, and other securities.
Such a versatile approach to financial services highlights Backpack’s ambitions to offer a comprehensive suite of investment products that can cater to both traditional investors and crypto enthusiasts.
As part of the acquisition agreement, Backpack will also be responsible for the return of assets belonging to FTX EU’s former clients. CEO Armani Ferrante emphasized the company’s commitment to returning these assets as quickly and securely as possible, reassuring clients that their funds will be handled with the utmost care.
The deal ensures that the rights of FTX EU’s existing customers and their balances, which have been authorized by the U.S. bankruptcy court, are preserved.
With plans to officially launch “Backpack EU” in the first quarter of 2025, the company is setting its sights on expanding its operations across more than 150 countries and regions. Currently, Backpack records a transaction volume exceeding $60 billion, and with its new European arm, it aims to further solidify its position in the global crypto market.
This acquisition could significantly reshape the crypto landscape, offering more regulated, secure, and efficient solutions for cryptocurrency traders and investors in Europe.