Backpack, a crypto exchange founded by former FTX executives, has successfully acquired FTX EU, the European arm of the now-defunct FTX exchange. The acquisition, which received approval from both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a strategic move by Backpack to expand its services in the European market.
As part of the acquisition, Backpack will now be able to offer regulated crypto derivatives and other financial products to European users. These offerings will include crypto derivatives such as perpetual futures. The move is particularly significant as several crypto exchanges have recently exited Europe, creating a gap in the region’s regulated crypto derivatives market.
Backpack’s CEO, Armani Ferrante, emphasized the importance of this acquisition, stating that gaining MiFID II (Markets in Financial Instruments Directive) licensing is a clear indication of the company’s commitment to the highest regulatory standards. Ferrante described the acquisition as “a significant step toward bringing transparent, secure, and regulated crypto trading to an underserved European market.”
In addition to offering new financial products, Backpack EU will play a key role in distributing FTX bankruptcy claims to former FTX EU customers. The exchange will also integrate traditional payment systems, such as SEPA (Single Euro Payments Area) and wire transfers, enabling users to make payments across Europe seamlessly.
The company is preparing to reactivate its EU license and plans to launch Backpack EU in the first quarter of 2025. While a specific launch date has not been confirmed, the announcement highlights the company’s readiness to move forward with its expansion plans.
Backpack was originally founded in 2022 by Armani Ferrante, a former employee of Alameda Research. Initially launched as the non-custodial Backpack Wallet, the platform was impacted by FTX’s collapse in November 2022, losing $14.5 million—88% of its operating funds. Despite the setback, the Backpack team decided to press on and continue building the platform with minimal funding. Now, with the acquisition of FTX EU, the company is poised for a major step forward in its growth.