Backpack, a cryptocurrency exchange founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of the defunct FTX exchange.
The acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), enables Backpack to expand its services across the European Union.
As part of the agreement, Backpack EU will be responsible for distributing funds to FTX EU customers through the court-approved bankruptcy claims process.
Backpack EU plans to launch in the first quarter of 2025, offering a range of crypto derivative services, including perpetual futures.
The exchange is committed to returning FTX EU customers’ funds promptly and securely, with CEO Armani Ferrante emphasizing that customer restitution is crucial for rebuilding trust in the industry.
FTX EU, initially known as Digital Assets AG, was acquired by FTX in 2021 for $323 million.
Following FTX’s collapse in November 2022, FTX EU was sold back to its founders for $32.7 million in February 2024.
Backpack, established in 2022 by Solana developer Armani Ferrante, had previously secured $20 million in funding from FTX and Jump Crypto.
Despite losing 88% of its operating funds during FTX’s collapse, Backpack has continued operations with minimal funding.
The acquisition of FTX EU marks a significant step for Backpack as it prepares to offer regulated crypto derivative services across the European Union.
Backpack acquires FTX EU, commits to refunding affected customers