Daniel Walker
The European division of the defunct cryptocurrency exchange FTX, which collapsed in late 2022, has been acquired by Backpack Exchange. This acquisition was approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
Under this agreement, Backpack Exchange will manage the distribution of funds to FTX EU users, following court-approved bankruptcy claims.
“Ensuring customer restitution is a vital step in restoring trust within the crypto industry,” said Armani Ferrante, CEO of Backpack Exchange. He emphasized the platform’s commitment to returning funds to affected users swiftly and securely.
Backpack Exchange: A Rising Player in Crypto Trading
Backpack Exchange is a cryptocurrency trading platform and digital wallet provider, established by former employees of FTX and Alameda Research. The company secured a valuation of $120 million during its Series A funding round in early 2024.
To expand its operations within the European Union (EU), Backpack Exchange obtained a MiFID II license. This builds on its previous licensing success with the Dubai Virtual Assets Regulatory Authority.
Launching as Backpack EU, the platform will introduce crypto derivatives, including perpetual futures, and support SEPA payments as well as wire transfers in prominent European currencies. Its services are expected to go live in the first quarter of 2025.
Learn: How to Buy Cryptocurrency?
Regulatory Compliance in the Era of MiCA
The acquisition aligns with the EU’s new Markets in Crypto-Assets (MiCA) framework, which provides regulatory clarity and consumer protection standards for virtual asset service providers.
“At a time when many global exchanges are exiting the European market, obtaining MiFID II licensing highlights our commitment to regulatory excellence,” Ferrante said. He added that this move positions Backpack to deliver secure, transparent, and regulated crypto trading to a European market that remains underserved.
From FTX Collapse to Industry Resurgence
Ferrante, who previously served as an engineer at Alameda Research, raised $20 million in late 2022 to establish Coral, the company behind the Backpack platform. This funding round was co-led by Jump Crypto and FTX Ventures. However, a significant portion of these funds was lost when FTX filed for bankruptcy.
Ferrante co-founded Coral with Can Sun, FTXโs former general counsel, who later testified against Sam Bankman-Fried, FTXโs ex-CEO. Bankman-Fried faced seven criminal charges, including wire fraud and conspiracy, and was sentenced to 25 years in prison in November 2023.
