In a move approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, Backpack Exchange has taken over the European operations of the defunct FTX exchange. This step aims to distribute court-approved claims to FTX users across Europe.
Backpack Exchange’s Ambitious Plans
Founded by former employees of FTX and Alameda, Backpack Exchange aims for significant growth. The platform secured a $120 million valuation during its Series A funding in 2024 and is now fortified with a MiFID II license to operate in European markets.
How Backpack Exchange Plans to Operate
Scheduled to go live in the first quarter, Backpack EU will offer SEPA payments and support major European currencies for remittances. Additionally, the platform plans to introduce cryptocurrency derivatives and perpetual contracts to enhance trading options.
Adapting to the New Crypto Landscape
The climate following FTX's collapse has prompted increased regulatory scrutiny in the European cryptocurrency sector. With former CEO Sam Bankman-Fried now facing a lengthy prison sentence for fraud, the focus shifts to how new platforms like Backpack Exchange will navigate this transformed landscape.
Backpack Exchange aims to restore FTX users' confidence by distributing bankruptcy claims. With a MiFID II license, the exchange is well-positioned for compliance and growth, and the launch of Backpack EU promises innovative trading options and wider currency support.
