Backpack, a centralized cryptocurrency exchange founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of the failed FTX exchange. This acquisition has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
Deal Details
A blog post released on January 7 announced that the acquisition involves managing the distribution of funds to FTX EU customers as part of the court-approved bankruptcy claims process. Armani Ferrante, CEO of Backpack, stated that obtaining a MiFID II license reflects the company’s dedication to upholding high regulatory standards. "... and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market," Ferrante stated.
Future Plans
The exchange plans to reintroduce its European services in the first quarter of 2025, pending the reactivation of its operational license. The new entity will provide various crypto-derivative services, including perpetual futures. Further user onboarding and asset recovery details will be made available through its support channels.
Strengthening the Team
Notably, Backpack recently strengthened its leadership team by appointing Laurence King as its head of audit. A seasoned banking professional with nearly three decades of experience at leading financial institutions such as Citibank, Morgan Stanley, Deutsche Bank, and JP Morgan Chase, King joined Backpack to bolster its commitment to transparency and audit integrity. With a proven track record in managing audits, regulatory engagement, and compliance frameworks, King’s addition was seen as a strategic move to enhance Backpack’s operational efficiency and credibility.
The acquisition of FTX EU allows Backpack to expand its presence in the European crypto market, providing more transparent and regulated trading. The company also focuses on integrating traditional payment systems to enhance user experience.
