The European arm of crypto firm FTX has been acquired by Backpack exchange.
Background
- The acquisition comes on the heels of the approval granted by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission
- Interestingly, the Backpack platform is founded by FTX and Alameda Research alumni
- Backpack CEO Armani Ferrante was a former Alameda engineer
- While several others working at the exchange have also been associated with FTX-Alameda
Why should you pay attention?
- Backpack Exchange will assume responsibility for distributing the previously court-approved FTX bankruptcy claims to FTX EU users
- With the acquisition, Backpack's new EU arm will offer a full suite of crypto derivatives throughout the European Union including perpetual futures
- Backpack EU is expected to go live in Q1 2025
Who said what?
- Backpack Exchange CEO Armani Ferrante asserted,
"Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible"
- With respect to the exchange’s expansion, he added,
“As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market”
Zooming out
- Backpack EU will work with Single Euro Payments Area (SEPA) payments and wire transfers in major European currencies
- The firm was valued at $120 million during its Series A financing round in early 2024
