Backpack Exchange Acquires FTX EU for $32.7 Million, Expanding European Presence

In a strategic move to bolster its presence in the European market, Backpack Exchange, a cryptocurrency trading platform founded by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million. This acquisition aims to expand Backpack’s derivatives offerings in a region where the regulated crypto derivatives market is gaining traction.

FTX EU’s Bankruptcy Claims Transferred to Backpack

As part of the acquisition deal, Dubai-based Backpack will assume responsibility for distributing court-approved bankruptcy claims totaling approximately €53 million ($55 million) to affected FTX EU customers. The FTX estate had previously pursued legal action to recover millions from the original owners of FTX EU, but this lawsuit was ultimately dropped as part of a settlement that facilitated the sale of the unit to its co-founders, Patrick Gruhn and Robin Matzke, who then sold it to Backpack.

Regulated Crypto Derivatives Trading in the EU

The acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives trading within the European Union. The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region. Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company’s “top priority” following the acquisition.

A Rising Star in Crypto?

Founded in 2022, Backpack has already made a mark in the industry. Ferrante, who previously worked at Alameda Research and played a pivotal role in developing the Solana blockchain, brings valuable experience to the table. Co-founder Tristan Yver also has a background as a former executive at FTX. Backpack secured a virtual-asset service provider license in Dubai and is currently pursuing a license to operate in Japan, having raised $17 million last year at a valuation of $120 million.

Expanding Regulated Crypto Derivatives Products

With the acquisition of FTX EU, Backpack is positioned to offer regulated crypto derivatives products, including perpetual swaps, across the European Union. The regulated crypto derivatives market in Europe has become increasingly appealing to various crypto firms, as evidenced by Coinbase Global Inc.’s recent acquisition of a Cyprus-based brokerage unit, which also secured a MiFID II license.

Conclusion

In conclusion, Backpack Exchange’s acquisition of FTX EU marks a significant milestone in the company’s expansion into the European market. With its MiFID II license and commitment to returning funds to customers, Backpack is poised to play a crucial role in shaping the future of crypto trading by offering innovative and regulated products that cater to the growing demand. As the market evolves, firms like Backpack are likely to continue making waves in the industry.

Source: Bitcoinist.com

#SmartContracts #HODL #Altcoin #CryptoWallet

The post Backpack Exchange Acquires FTX EU for $32.7M appeared first on CoinBuzzFeed.