FTX EU sold to former FTX employees’ Backpack Exchange for $32.7 million

Key Takeaways

Backpack Exchange has acquired FTX EU for $32.7 million with regulatory approval from Cyprus and the FTX bankruptcy court.
With a launch in Q1 2025, Backpack aims to become Europe’s sole regulated provider of perpetual futures, leveraging its MiFID II license.

Backpack Exchange, founded by former FTX and Alameda Research employees, has acquired FTX EU for $32.7 million in a deal approved by Cyprus regulators and the FTX bankruptcy court.

The acquisition includes a commitment to distribute funds owed to FTX EU customers through the bankruptcy claims process.

“We’re fully focused on working with all the relevant parties to return customer funds in the EU. It’s our top priority,” said Backpack CEO Armani Ferrante.

The company plans to launch its European operations in the first quarter of 2025, offering perpetual futures and other crypto derivative products.

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FTX EU, formerly Digital Assets AG, was previously acquired by FTX in 2021 for $323 million before FTX’s bankruptcy in 2022.

Backpack Exchange aims to establish itself as the sole regulated provider of perpetual futures in Europe, leveraging its MiFID II license and pending MiCA notification.

Ferrante noted that while competitors like Coinbase and Bitstamp have obtained derivatives licenses, they have not yet launched perpetual futures trading in the EU.

Founded in 2022 by Ferrante, a prominent Solana developer, Backpack initially launched with the non-custodial Backpack Wallet before expanding into derivatives trading.

The company raised $17 million in funding last year despite losing operational funds during FTX’s collapse.

Backpack EU plans to introduce a full suite of crypto trading products, with some launches expected later in 2025.