FTX EU Gets Acquired By Exchange Founded By Alameda Alumni

The European arm of crypto firm FTX has been acquired by Backpack exchange.

Background

• The acquisition comes on the heels of the approval granted by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission
• Interestingly, the Backpack platform is founded by FTX and Alameda Research alumni
• Backpack CEO Armani Ferrante was a former Alameda engineer
• While several others working at the exchange have also been associated with FTX-Alameda

Why should you pay attention?

• Backpack Exchange will assume responsibility for distributing the previously court-approved FTX bankruptcy claims to FTX EU users
• With the acquisition, Backpack's new EU arm will offer a full suite of crypto derivatives throughout the European Union including perpetual futures
• Backpack EU is expected to go live in Q1 2025

Who said what?

• Backpack Exchange CEO Armani Ferrante asserted,

"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"

• With respect to the exchange’s expansion, he added,

“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”

Zooming out

• Backpack EU will work with Single Euro Payments Area (SEPA) payments and wire transfers in major European currencies
• The firm was valued at $120 million during its Series A financing round in early 2024

In other related news

• FTX’s Reorganization Plan Gets Approved by US Judge
• FTX Insider Caroline Ellison Sentenced Two Years in Prison
• Celsius Seeks to Overturn $444 Million Claim Rejection in FTX Case