The former team members at FTX have successfully closed the acquisition of FTX EU, planning to introduce crypto products that adhere to MiFID II regulations under their recently acquired entity, Backpack Exchange.
A company called Backpack, which was founded by ex-FTX executives and deals with cryptocurrency exchange, has taken over FTX EU, the previous European division of FTX, as part of its growth strategy in Europe. This acquisition, sanctioned by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, enables Backpack to provide regulated crypto derivatives and additional financial services to users based in Europe, according to a blog post made by the company.
The newly established European division will offer various cryptocurrency derivative products, such as perpetual futures. This move is notable because other trading platforms are withdrawing from Europe, creating a void in the legally compliant digital currency derivatives sector. Backpack’s CEO, Armani Ferrante, states that acquiring a MiFID II license signifies our commitment to upholding stringent regulatory guidelines and represents an important milestone towards introducing transparent, secure, and regulated crypto trading to an under-served European market.
Beyond introducing new items, Backpack EU will manage the distribution of FTX bankruptcy settlements for FTX EU clients. Additionally, Backpack EU plans to incorporate conventional payment methods, enabling users to process transactions throughout Europe using SEPA and wire transfers, as stated in the announcement.
The organization intends to restart its European license and unveil Backpack EU during the first quarter of 2025, although a specific timeline for the release hasn’t been disclosed yet.
Established in 2022 by Armani Ferrante, a former employee of Alameda Research, Backpack originally debuted as the non-custodial Backpack Wallet. In November 2022, during the downfall of FTX, Backpack experienced a loss of $14.5 million, representing 88% of its operational resources. Despite this significant financial hit, the team opted to persist in development with limited funding.
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2025-01-07 12:47