In a move to bolster its presence in the European market, Backpack Exchange, a crypto trading platform established by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million.
As earlier reported by Bloomberg, this acquisition aims to expand Backpack’s derivatives offerings in a region where the regulated crypto derivatives market is increasingly gaining traction.
FTX EU’s Bankruptcy Claims Transferred
FTX EU was one of the units that fell under bankruptcy proceedings following the collapse of the exchange in 2022. As part of the acquisition deal, Dubai-based Backpack will assume responsibility for distributing court-approved bankruptcy claims totaling approximately €53 million ($55 million) to affected FTX EU customers.
Related Reading: Strategic Bitcoin Reserve Process Begins In 14 US States This Month, Says Insider
The FTX estate had previously pursued legal action to recover millions from the original owners of FTX EU. However, this lawsuit was ultimately dropped as part of a settlement that facilitated the sale of the unit to its co-founders, Patrick Gruhn and Robin Matzke, who then sold it to Backpack.
This acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives trading within the European Union.
The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region.
Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company’s “top priority” following the acquisition. In an interview, he stated, “We will not serve a single user, not serving a single trade in the EU until we have the ability to return customers’ funds.”
A Rising Star In Crypto?
Founded in 2022, Backpack has already made a mark in the industry. Ferrante, who previously worked at Alameda Research and played a pivotal role in developing the Solana blockchain, brings valuable experience to the table.
Co-founder Tristan Yver also has a background as a former executive at FTX. Backpack secured a virtual-asset service provider license in Dubai and is currently pursuing a license to operate in Japan, having raised $17 million last year at a valuation of $120 million.
With the acquisition of FTX EU, Backpack is positioned to offer regulated crypto derivatives products, including perpetual swaps—futures contracts that do not expire—across the European Union.
Related Reading: Bitcoin Joins Top 10 Global Assets, Claiming The 7th Spot—Report
The regulated crypto derivatives market in Europe has become increasingly appealing to various crypto firms, as evidenced by Coinbase Global Inc.’s recent acquisition of a Cyprus-based brokerage unit, which also secured a MiFID II license.
“Derivatives make up an enormous amount of crypto trading volume,” Ferrante remarked, expressing enthusiasm for the opportunity to reintegrate crypto derivatives trading in the EU.
As the market evolves, firms like Backpack are poised to play a crucial role in shaping the future of crypto trading by offering innovative and regulated products that cater to the growing demand.
At the time of writing, FTT, the defunct exchange’s native token, is trading at $3, following the broader market correction with a drop of nearly 11%.
Featured image from DALL-E, chart from TradingView.com
In a move to bolster its presence in the European market, Backpack Exchange, a crypto trading platform established by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million.
As earlier reported by Bloomberg, this acquisition aims to expand Backpack’s derivatives offerings in a region where the regulated crypto derivatives market is increasingly gaining traction.
FTX EU’s Bankruptcy Claims Transferred
FTX EU was one of the units that fell under bankruptcy proceedings following the collapse of the exchange in 2022. As part of the acquisition deal, Dubai-based Backpack will assume responsibility for distributing court-approved bankruptcy claims totaling approximately €53 million ($55 million) to affected FTX EU customers.
Related Reading: Strategic Bitcoin Reserve Process Begins In 14 US States This Month, Says Insider
The FTX estate had previously pursued legal action to recover millions from the original owners of FTX EU. However, this lawsuit was ultimately dropped as part of a settlement that facilitated the sale of the unit to its co-founders, Patrick Gruhn and Robin Matzke, who then sold it to Backpack.
This acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives trading within the European Union.
The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region.
Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company’s “top priority” following the acquisition. In an interview, he stated, “We will not serve a single user, not serving a single trade in the EU until we have the ability to return customers’ funds.”
A Rising Star In Crypto?
Founded in 2022, Backpack has already made a mark in the industry. Ferrante, who previously worked at Alameda Research and played a pivotal role in developing the Solana blockchain, brings valuable experience to the table.
Co-founder Tristan Yver also has a background as a former executive at FTX. Backpack secured a virtual-asset service provider license in Dubai and is currently pursuing a license to operate in Japan, having raised $17 million last year at a valuation of $120 million.
With the acquisition of FTX EU, Backpack is positioned to offer regulated crypto derivatives products, including perpetual swaps—futures contracts that do not expire—across the European Union.
Related Reading: Bitcoin Joins Top 10 Global Assets, Claiming The 7th Spot—Report
The regulated crypto derivatives market in Europe has become increasingly appealing to various crypto firms, as evidenced by Coinbase Global Inc.’s recent acquisition of a Cyprus-based brokerage unit, which also secured a MiFID II license.
“Derivatives make up an enormous amount of crypto trading volume,” Ferrante remarked, expressing enthusiasm for the opportunity to reintegrate crypto derivatives trading in the EU.
As the market evolves, firms like Backpack are poised to play a crucial role in shaping the future of crypto trading by offering innovative and regulated products that cater to the growing demand.
At the time of writing, FTT, the defunct exchange’s native token, is trading at $3, following the broader market correction with a drop of nearly 11%.
Featured image from DALL-E, chart from TradingView.com
