Backpack Exchange, a cryptocurrency platform established by former FTX and Alameda Research employees, has recently acquired FTX EU, the European subsidiary of FTX exchange which went bankrupt in 2022, for $32.7 million.
Backpack has acquired FTX EU and its MiFID II License.
Our first priority is to return all customer EURO funds on behalf of the FTX estate, followed by rolling out a full suite of spot, margin, and futures trading products.
Crypto perps trading is coming back to Europe 🇪🇺 pic.twitter.com/ExxYFufZHj
— Backpack 🎒 (@Backpack) January 7, 2025
Regulatory Approval and Future Plans
For the acquisition to be complete an approval is needed from the court that was overseeing the bankruptcy proceedings and a regulatory approval from the Cyprus Securities and Exchange Commission (CySEC), as FTX EU was licensed and operated under MiFID II regulations in Cyprus. Approval from both the sides have been received for the acquisition in this case.
This new Backpack Exchange entity is now planning to introduce regulated crypto derivatives across the continent and offer a package of crypto derivates. Backpack also stated that it would become the only regulated perpetual future provider in Europe.
Backpack was planning to launch this new entity by Q1 2025 but since FTX EU’s license has been suspended by the CySEC till May 30, 2025, there might be some delay with the original launch plan.
Commitment to Customer Restitution
Backpack Exchange is committed to make things right for the customers that were affected by the collapse of the bankrupt exchange. They aim to restore customer trust and return funds to those who lost money and will follow a court-approved process to ensure a fair and secure distribution of funds to the EU customers.
Implication on the European Market
With FTX collapse and its exit from the EU market, left a void in the market for another exchange to fill in. With Backpack’s acquisition and MiFID II license, Backpack is expanding it footprints the European Market. With this move, the acquiring exchange is also indicating its commitment towards adhering to the stringent regulatory guidelines and willingness to provide transparent and secure trading services to the European users.
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