Crypto exchange Backpack, founded by former FTX execs, acquires FTX EU

FTX alumni Backpack Exchange has completed the acquisition of FTX EU, which is preparing to launch MiFID II-regulated crypto products.

Backpack, a crypto exchange founded by former FTX executives, has acquired FTX EU, FTX’s former European arm, as part of its expansion into the European market. The acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, will allow Backpack to offer regulated crypto derivatives and other financial products to European users, the company said in a blog announcement.

The new European branch will provide a range of crypto derivatives, including perpetual futures. This comes as other exchanges exit Europe, leaving a gap in the regulated crypto derivatives market. Backpack CEO Armani Ferrante said that becoming a MiFID II licensed organization “demonstrates our commitment to meeting the highest regulatory standards and is an important step in bringing transparent, secure and regulated crypto trading to an underserved European market.”

In addition to offering new products, Backpack EU will also handle the distribution of FTX bankruptcy claims to FTX EU customers. The announcement stated that Backpack EU will also integrate traditional payment systems, allowing users to make payments across Europe via SEPA and bank transfers.

The company plans to reactivate the EU license and launch Backpack EU in the first quarter of 2025, but no exact timeframe for the launch has been specified.

Founded in 2022 by Armani Ferrante, an early employee of Alameda Research, Backpack initially launched as the unattended Backpack Wallet. During the FTX collapse in November 2022, Backpack lost $14.5 million, 88% of its operating funds. Despite this setback, the team chose to continue construction with minimal financing.