Michaela Alvez
Backpack Exchange, the cryptocurrency platform founded by ex-FTX and Alameda Research employees, has completed the acquisition of FTX EU, the European division of the defunct FTX exchange.
In a recent blog post, the platform confirmed that its acquisition of FTX EU was approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). This deal paves the way for Backpack to provide regulated crypto derivatives and additional financial products to users across Europe.
Its new European branch will offer a variety of crypto derivatives, such as perpetual futures, addressing the void left by other exchanges exiting the region.
CEO Armani Ferrante emphasized that 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.”
In a January 7 post on X, Backpack EU stated that its top priority is to facilitate the return of all customer Euro funds as part of the FTX estate’s recovery process.
Ferrante emphasized the crucial role of customer restitution in the broader recovery of the industry. “Returning funds to FTX EU customers quickly and safely is a critical step in rebuilding trust,” he stated.
In late 2024, CySEC extended FTX EU’s suspension for an additional six months. While the exchange was barred from offering new services, it was still permitted to process transactions and return funds to clients. The company intends to reactivate its EU license and is targeting a launch in the first quarter of 2025.
Backpack Exchange, founded in 2022 by Ferrante, a former employee of Alameda Research, initially debuted as a non-custodial platform called Backpack Wallet. The company faced a major setback in November 2022, during the collapse of FTX, when it lost $14.5 million — 88% of its operating funds.
Despite the significant financial hit, the team opted to press forward with its development plans, operating with minimal funding. Now, as the company expands its reach in the crypto space, Backpack Exchange has refocused its efforts on rebuilding and offering a regulated, secure trading platform in the European market.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
