Backpack, a crypto exchange founded by former FTX executives, has taken a significant step into the European market by acquiring FTX EU, the European arm of the defunct FTX platform.
According to a Jan. 7 statement, the acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
European expansion
The acquisition grants Backpack access to FTX EU’s Markets in Financial Instruments Directive (MiFID) II license under CySEC, enabling it to offer compliant crypto derivatives, including perpetual futures, across the EU.
This move would allow Backpack to address gaps left by unregulated offshore exchanges while meeting the increased demand for secure and regulated crypto trading solutions in Europe.
Armani Ferrante, CEO of Backpack Exchange, said:
“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.”
To enhance user experience, Backpack EU plans to integrate traditional payment systems, including Single Euro Payments Area (SEPA) transfers and wire payments, offering quick and low-cost options.
The exchange expects to launch its EU operations in the first quarter of this year.
FTX ties
Meanwhile, the exchange is committed to resolving outstanding customer claims tied to FTX EU’s bankruptcy.
According to Ferrante, the newly formed Backpack EU will handle the distribution of approved claims, ensuring that affected customers regain access to their funds efficiently. He added:
“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’s origins trace back to FTX, with co-founders Ferrante and Can Sun playing pivotal roles in the now-defunct platform.
Ferrante previously worked as a software developer at Alameda Research, while Sun served as FTX’s general counsel and was a key witness against Sam Bankman-Fried, the convicted founder of FTX.
Despite these ties, Backpack is carving a new path by prioritizing regulatory compliance and customer trust. Last year, the firm expanded to 11 US states, including California and Colorado.
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