FTX EU, the European arm of the now-collapsed crypto exchange FTX, has been acquired by Backpack Exchange. FTX bankruptcy court cleared the acquisition. On the other hand, Cyprus Securities and Exchange Commission also gave the green signal for the deal. As part of the deal, Backpack Exchange takes over claims distribution responsibility on behalf of FTX EU users.

Backpack EU to Launch in 2025, Offering Crypto Derivatives Across the EU

The purpose of Backpack Exchange in FTX EU is to get the funds back to FTX EU users quickly. Armani Ferrante is CEO of Backpack Exchange. He said that customer compensation is an important step to regain trust and confidence in the industry. Backpack assured that it would deal with processing of these claims safely and efficiently.

Backpack Exchange is a crypto exchange and digital wallet platform founded by former employees of FTX and Alameda Research. The platform then raised $120 million during Series A financing round in early 2024. Backpack have acquired a MiFID II license to facilitate its global expansion. Backpack will also gain the ability to extend their services in the EU under this license.

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Crypto derivatives like perpetual futures will be offered all throughout the European Union on the express new branch named Backpack EU. It will launch in the first quarter of 2025. Specifically, SEPA payments and wire transfers in major European currencies will be supported on the exchange.

MiCA Regulation and MiFID II License Set to Transform EU Crypto Market

The European Union’s Markets in Crypto-Assets (MiCA) regulation goes into effect at the same time. The goals of MiCA include erecting more clear rules and protections from crypto user side. Ferrante mentioned that many international exchanges are choosing to leave the European Union. He added that obtaining a MiFID II license demonstrates their commitment to the toughest regulatory standards.

Ferrante, who formerly was an Alameda engineer, also had introduced $20 million to start the crypto infrastructure firm Coral. Backpack’s trading and wallet platform was built on tech developed by Coral. Though that funding was lost when FTX collapsed.

FTX filed for bankruptcy in November 2022. Sam Bankman-Fried, its former CEO, was convicted of multiple criminal counts and sentenced to 25 years in prison in November 2023.