UAE licensed Backpack Exchange, a global cryptocurrency exchange has acquired FTX EU, the MiFID II-licensed former European arm of FTX. In a Coindesk article, it noted that BackPack acquired FTX EU for $32.7 million.
As per the press release, the acquisition which was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a major milestone in Backpack’s global expansion and commitment to delivering secure, regulated trading solutions across Europe.
Backpack EU is planned to go live in Q1 of 2025. The crypto exchange will offer a full suite of crypto derivatives throughout the European Union including perpetual futures.
With the acquisition, Backpack’s new EU arm will offer a full suite of crypto derivatives throughout the European Union including perpetual futures, a market where no regulated crypto derivatives currently exist, as unregulated offshore exchanges have been forced to wind down their unlicensed European operations.
Armani Ferrante, CEO of Backpack Exchange, commented: “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.”
As part of the acquisition, Backpack EU will undertake responsibility for distributing the previously court-approved FTX bankruptcy claims to FTX EU customers.
Mr. Ferrante further noted, “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.”
In addition to compliant product offerings, Backpack EU will provide seamless integration with traditional payment rails including instant, low-cost Single Euro Payments Area (SEPA) payments and wire transfers in major currencies across the region.
In February 2024, The BackPack raised $17 million in a series A round led by PlaceHolder VC.
