George Miller
Backpack Exchange, a cryptocurrency platform founded by former employees of FTX and Alameda Research, including Can Sun, has recently purchased FTX EU, the European branch of the now-defunct FTX exchange that filed for bankruptcy in 2022.
Backpack has acquired FTX EU along with its MiFID II License.
Our top priority is to reimburse all customer EURO funds from the FTX estate, followed by launching a comprehensive range of spot, margin, and futures trading products.
Crypto perpetual trading is returning to Europe pic.twitter.com/ExxYFufZHj
— Backpack (@Backpack) January 7, 2025
Regulatory Approval and Future Plans
The finalization of the acquisition relies on court approval from the ongoing bankruptcy case as well as regulatory consent from the Cyprus Securities and Exchange Commission (CySEC). Since FTX EU operated under MiFID II regulations in Cyprus, both approvals have been successfully secured.
The newly established Backpack Exchange plans to roll out regulated crypto derivatives across Europe, which will include offering perpetual futures.
Initially, Backpack intended to launch this new entity by the first quarter of 2025; however, due to a suspension of FTX EU’s license by CySEC until May 30, 2025, this schedule may face delays.
Commitment to Customer Restitution
Backpack Exchange is dedicated to rectifying the issues faced by customers affected by the FTX collapse. They aim to rebuild trust and ensure that funds are returned to clients who lost money, following a court-sanctioned process for a fair and secure distribution of funds to EU customers.
Impact on the European Market
The collapse of FTX created a significant gap in the EU market for an exchange to take its place. With the acquisition and MiFID II license, Backpack is now expanding its presence in this market. This move underscores Backpack’s commitment to adhering to strict regulatory standards and its goal to provide transparent and secure trading services to European users.