Backpack Acquires FTX EU: A New Era for Crypto Trading in Europe
The crypto world is no stranger to dramatic twists and turns, and the latest development is no exception. Backpack, a centralized cryptocurrency exchange (CEX) founded by former FTX and Alameda Research employees, has officially acquired FTX EU. This move signals a significant shift in Europe’s crypto landscape, paving the way for new opportunities and a fresh start for many affected by FTX’s collapse.
A Bold Expansion into Europe
With the seal of approval from both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), Backpack is set to make waves in the European market. The acquisition allows the company to offer a comprehensive range of crypto derivatives services across the EU, including perpetual futures.
While the expansion is exciting news for traders, it also carries a deeper mission—returning funds to FTX EU customers. As part of the deal, Backpack EU will oversee fund distribution, ensuring that affected users reclaim what was lost in the aftermath of FTX’s turbulent downfall.
Backpack EU to Launch in Early 2025
Regulatory hurdles have played a significant role in delaying the operations of FTX EU. In late 2024, CySEC extended FTX EU’s business suspension for another six months. Though this prevented active trading, the regulator allowed the company to process fund withdrawals—something Backpack is prioritizing.
Armani Ferrante, CEO of Backpack, emphasized the company’s commitment to ensuring affected customers are reimbursed as quickly and safely as possible.
“Customer restitution is a crucial step to rebuild trust and confidence in the industry.” — Armani Ferrante
Cyprus, Europe, Bankruptcy, FTX
With plans to revive its operational license, Backpack EU is gearing up for a full launch in Q1 2025. The exchange has promised transparent communication on user onboarding, fund withdrawals, and access to assets for FTX EU users.
From FTX Collapse to New Ownership
The story of FTX EU’s ownership has been full of twists, and Backpack’s takeover is just the latest chapter. Originally known as Digital Assets AG (DAAG), the company was bought by FTX in 2021 for a hefty $323 million. However, after FTX’s shocking collapse in November 2022, the European branch quickly became a hot commodity, attracting interest from firms like Coinbase.
Ultimately, in early 2024, FTX opted to sell FTX EU back to its original founders for $32.7 million before Backpack’s acquisition surfaced.
Meet the Visionaries Behind Backpack
If this story sounds familiar, that’s because the creators of Backpack have deep-rooted connections to FTX and the wider crypto industry. Armani Ferrante, a well-known Solana developer, co-founded Backpack in 2022. Before launching the exchange, he secured a $20 million funding boost from FTX and Jump Crypto to develop the Backpack Wallet—an essential crypto tool designed for security and ease of use.
Ferrante is no stranger to the crypto world—he also created Anchor, a widely-used Solana development framework that helps streamline blockchain applications.
Backpack co-founder Armani Ferrante
Another key player in Backpack’s journey is Tristan Yver, a fellow co-founder who previously worked at FTX for two years before parting ways in mid-2022.
Despite suffering a staggering $14.5 million loss during the FTX crisis—wiping out 88% of its operational funds—Backpack has managed to persevere. This resilience speaks volumes about its leadership and their determination to build something lasting in the crypto space.
The Road Ahead for Backpack EU
With the dust of FTX’s collapse still settling, Backpack’s acquisition of FTX EU is a bold step toward a brighter future for both the exchange and its users. Restoring trust in the industry is no simple feat, but by prioritizing user restitution and bringing innovation to the European market, Backpack is making a strong case for itself.
As 2025 approaches, one thing is clear: crypto traders in the EU have a fresh player in town—one that is eager to prove it can rise from the ashes of FTX and build something even stronger.
