Backpack Exchange Acquires FTX EU, Eyes Q1 2025 Launch
Restoring Trust in Crypto: A New Chapter for FTX EU Customers
In a major move aimed at reshaping its presence in the European crypto market, Backpack Exchange, a centralized cryptocurrency exchange (CEX) founded by former Alameda Research and FTX employees, has officially acquired FTX EU, the European arm of the defunct FTX exchange.
Key Approval and Future Plans
The acquisition received the green light from both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). With this approval, Backpack Exchange is set to expand its operations across the European Union, offering a comprehensive range of crypto derivative services, including perpetual futures.
A significant aspect of the deal involves Backpack EU managing the distribution of funds to FTX EU customers as part of the court-approved bankruptcy claims process. This step underscores the company’s commitment to addressing the fallout from FTX’s collapse and restoring customer trust.
Launch Set for Q1 2025
Backpack EU is expected to go live in Q1 2025, pending the reactivation of its operating license. The platform will provide detailed guidance on how new users can sign up and how existing FTX EU customers can reclaim their assets.
CEO Armani Ferrante emphasized the importance of customer restitution, stating:
“Rebuilding trust and confidence in the industry starts with putting customers first. Returning FTX EU users’ funds safely and efficiently is our top priority.”
The Journey of FTX EU
Originally known as Digital Assets AG (DAAG), a Swiss-based company, FTX EU was acquired by FTX in 2021 for $323 million. However, following FTX’s collapse in November 2022, the entity faced significant turmoil, including multiple acquisition attempts by companies like Coinbase.
In February 2024, FTX sold FTX EU back to its original founders for $32.7 million. The acquisition by Backpack marks another significant milestone in its ongoing recovery process.
A Resilient Backpack Exchange
Backpack Exchange was founded in 2022 by Armani Ferrante, a prominent Solana developer, with $20 million in funding from FTX and Jump Crypto. The platform initially focused on launching a non-custodial Backpack Wallet. Despite losing $14.5 million—88% of its operational funds—during the FTX collapse, Backpack managed to continue operations with limited resources.
Co-founder Tristan Yver, a former FTX executive, left the company months before its downfall, further strengthening the team’s credentials in navigating the complexities of the crypto industry.
Global Expansion and Crypto’s Resurgence
With this acquisition, Backpack Exchange joins a growing list of firms utilizing blockchain innovation to stabilize and expand the crypto industry. CySEC’s role in supporting such transitions underscores Cyprus’s importance as a crypto hub in Europe, ensuring compliance and transparency in the evolving regulatory landscape.
Conclusion
The acquisition of FTX EU by Backpack Exchange is not just about reclaiming lost ground; it is a statement of resilience and a commitment to rebuilding customer trust. As Backpack EU gears up for its Q1 2025 launch, this move represents a significant step forward in resolving the aftermath of the FTX collapse while setting the stage for a renewed focus on innovation and customer satisfaction in the crypto industry.
