Backpack Exchange Acquires FTX EU, Signaling Strategic Expansion Across the European Union

Backpack Exchange, a cryptocurrency platform founded by former FTX and Alameda Research employees, has officially acquired FTX EU, the European arm of the defunct FTX exchange.

Backpack, a cryptocurrency platform founded by former FTX and Alameda Research employees, has acquired FTX EU, the European arm of the defunct FTX exchange, in a move that will allow Backpack to offer crypto derivatives, including perpetual futures, to users throughout the EU.

The acquisition, which was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), will also see Backpack EU oversee the distribution of funds to former FTX EU customers, as part of the court-approved bankruptcy claims plan.

“This step is critical for rebuilding trust in the crypto industry,” said Backpack CEO Armani Ferrante. “We are committed to ensuring that funds are returned quickly and safely, as customer restitution remains a cornerstone of our strategy.”

FTX EU, which was originally known as Digital Assets AG and was based in Switzerland, was acquired by FTX in 2021 for $323 million. However, the collapse of FTX in late 2022 left its European arm in operational and legal uncertainty.

After months of interest from various firms, including Coinbase, FTX EU was ultimately sold back to its original founders for $32.7 million in February 2024. This sale paved the way for Backpack to step in and secure the acquisition.

Backpack plans to reactivate the operational license for FTX EU, with a relaunch set for the first quarter of 2025. The company will be providing updates on asset access and new user onboarding through its support channels.

CySEC had decided in November 2024 to extend the suspension of FTX EU’s services for another six months. While the suspension prevents the platform from offering services or advertising, it does allow for the processing of transactions and the return of funds to existing clients—a function that Backpack EU is now set to handle.

The acquisition marks a new chapter for Backpack, a company that was founded in 2022 by Solana developer Ferrante. Initially funded with $20 million from FTX and Jump Crypto, Backpack faced significant challenges during FTX’s collapse, losing $14.5 million—88% of its operating funds.

Despite these losses, the company has demonstrated resilience, leveraging its innovative team and strategic acquisitions to rebuild its presence in the crypto market.

Backpack co-founder Tristan Yver, who worked at FTX for two years before leaving in May 2022, brings additional expertise to the table. His industry experience has been instrumental in shaping Backpack’s strategy as the company navigates the complexities of the European crypto market.

The reactivation of the FTX EU license and the relaunch of its services in 2025 are expected to position Backpack as a leading player in the region, offering advanced trading solutions and a renewed focus on customer satisfaction.

The European crypto market presents a mix of challenges and opportunities. Regulatory compliance, particularly under CySEC’s oversight, will be crucial for Backpack’s success. However, the acquisition of FTX EU provides a competitive advantage, granting access to an established user base and regulatory approval.

By prioritizing customer restitution and delivering innovative services, Backpack aims to distinguish itself as a trusted name in the market.