Backpack, a centralized cryptocurrency exchange founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of the failed FTX exchange.
This acquisition has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), allowing Backpack to expand its operations within the European Union.
A blog post released on January 7 announced that the acquisition involves managing the distribution of funds to FTX EU customers as part of the court-approved bankruptcy claims process. Armani Ferrante, CEO of Backpack, stated that obtaining a MiFID II license reflects the company’s dedication to upholding high regulatory standards. “… and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market,” Ferrante stated.
The exchange plans to reintroduce its European services in the first quarter of 2025, pending the reactivation of its operational license. The new entity will provide various crypto-derivative services, including perpetual futures. Further user onboarding and asset recovery details will be made available through its support channels.
Backpack EU will introduce new trading products and manage the distribution of bankruptcy claims for former FTX EU customers. Additionally, the company plans to integrate traditional payment systems, enabling users to make SEPA and wire transfers across Europe.
The reactivation of Backpack EU’s license and its official launch are expected in Q1 2025, though no specific date has been confirmed.
Notably, Backpack recently strengthened its leadership team by appointing Laurence King as its head of audit. A seasoned banking professional with nearly three decades of experience at leading financial institutions such as Citibank, Morgan Stanley, Deutsche Bank, and JP Morgan Chase, King joined Backpack to bolster its commitment to transparency and audit integrity. With a proven track record in managing audits, regulatory engagement, and compliance frameworks, King’s addition was seen as a strategic move to enhance Backpack’s operational efficiency and credibility.
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