FTX EU Acquired by Backpack Exchange for $32.7 Million
FTX EU, the European branch of Sam Bankman Fried’s bankrupt cryptocurrency trading platform, has been acquired by Backpack Exchange, a company founded by former Alameda Research and FTX employees. The acquisition cost Backpack $32.7 million.
FTX EU holds a MiFID II license under the Cyprus Securities and Exchange Commission (CySEC) and will provide a full suite of crypto derivatives across the EU. According to CEO Armani Ferrante, Backpack aims to capitalize on its status as the only regulated perpetual futures provider in Europe.
Several crypto trading firms are pursuing MiFID licenses to offer crypto-asset services under the new Markets in Crypto Assets (MiCA) regime. Currently, Bitstamp and Coinbase have obtained their MiFID II licenses, while D2X, based in the Netherlands, has also received a license and plans to launch USD-denominated futures and options soon. Other new entrants seek to shift market dominance from Panama-based centralized exchange Deribit.
Ferrante stated that Backpack has submitted its MiCA notification and expects to go live in Q1 2025. He noted that no current players in the EU, including Coinbase and Bitstamp, offer perpetuals. After returning funds to FTX EU customers, Backpack plans to prioritize launching a regulated perpetual futures product.
A comprehensive range of products is under development, although not all may be available in Q1. Backpack, whose founders have contributed to the Solana ecosystem and developed a successful wallet and NFT business, secured $17 million in funding last year.