Backpack Exchange Acquires FTX EU for $32.7 Million, Eyes European Expansion

Whales Accumulate Bitcoin

In a significant development in the cryptocurrency space, Backpack Exchange has acquired FTX EU for $32.7 million, with regulatory approval from Cyprus and the FTX bankruptcy court. The acquisition marks a crucial step in Backpack’s plans to establish itself as a major player in the European market.

Acquisition Details and Commitment to Customer Funds

The deal includes a commitment to distribute funds owed to FTX EU customers through the bankruptcy claims process. Backpack CEO Armani Ferrante emphasized the company’s focus on returning customer funds, stating, “We’re fully focused on working with all the relevant parties to return customer funds in the EU. It’s our top priority.”

European Expansion Plans

Backpack Exchange plans to launch its European operations in the first quarter of 2025, offering perpetual futures and other crypto derivative products. The company aims to leverage its MiFID II license and pending MiCA notification to become the sole regulated provider of perpetual futures in Europe. Notably, while competitors like Coinbase and Bitstamp have obtained derivatives licenses, they have not yet launched perpetual futures trading in the EU.

Company Background and Funding

Backpack Exchange was founded in 2022 by Armani Ferrante, a prominent Solana developer, and former FTX and Alameda Research employees. The company initially launched with the non-custodial Backpack Wallet before expanding into derivatives trading. Despite losing operational funds during FTX’s collapse, Backpack raised $17 million in funding last year.

Future Plans and Product Offerings

Backpack EU plans to introduce a full suite of crypto trading products, with some launches expected later in 2025. The company’s acquisition of FTX EU and planned expansion into the European market position it for significant growth in the region.

Conclusion

In summary, Backpack Exchange’s acquisition of FTX EU for $32.7 million marks a significant milestone in the company’s plans to establish itself as a major player in the European market. With a focus on returning customer funds and a commitment to regulatory compliance, Backpack is poised for growth in the region. As the company expands its product offerings and launches its European operations, it will be interesting to see how it navigates the competitive landscape.

Source: Cryptobriefing.com

Please follow and like us: