In an effort to strengthen its presence in the European market, Backpack Exchange, a crypto trading platform founded by former FTX employees Sam Bankman-Fried and Alameda Research, has acquired the European organization of the defunct FTX exchange for 32.7 million dollars .
As before report via Bloomberg, this acquisition aims to expand Backpack’s derivatives offering in an environment where the regulated crypto derivatives market is gaining momentum.
FTX EU Bankruptcy Claims Filed
FTX EU is one of the units falling under bankruptcy proceedings following the collapse of the exchange in 2022. As part of the settlement agreement, Backpack Dubai will assume responsibility for court-ordered distribution. bankruptcy claims totaling €53 million ($55 million) from affected FTX EU customers.
The FTX estate had previously taken legal action to recover millions from the original owners of FTX EU. However, the lawsuit was eventually dropped as part of the deal that saw the division sold to its founders, Patrick Gruhn and Robin Matzke, who in turn sold it to Backpack.
This acquisition is particularly noteworthy as FTX EU has a MiFID II license, which allows it to offer crypto derivatives trade within the European Union.
The operation received approval from the Cyprus Securities and Exchange Commission, paving the way for Ubhaka to operate legally in the region.
Armani Ferrante, CEO of Backpack, stressed that returning funds to customers is the company’s “priority” following the acquisition. In an interview, he said, “We will not provide single-user, single-use trading in the EU until we have the ability to recover customers’ money.”
A Rising Star In Crypto?
Founded in 2022, Backpack is already making a mark in the industry. Ferrante, who previously worked at Alameda Research and was instrumental in developing Solana blockchainbrings valuable experience to the table.
Founder Tristan Yver also has a background as a former executive at FTX. Backa received a virtual goods service provider license in Dubai and is currently pursuing an operating license in Japan, having raised $17 million last year at a valuation of $120 million.
With the acquisition of FTX EU, Backpack is in a position to offer regulated crypto derivatives products, including perpetual swaps—futures contracts which do not expire—throughout the European Union.
The regulated crypto derivatives market in Europe is becoming more attractive to different crypto companies, as evidenced by the purchase of Coinbase Global Inc. the latest of the Cyprus brokerage unit, which has also received a MiFID II licence.
“Derivatives make up a large amount of crypto trading volume,” Ferrante noted, expressing enthusiasm for the opportunity to reintegrate crypto derivatives trading in the EU.
As the market evolves, firms like Backpack are poised to play an important role in shaping the future of crypto. to trade by offering innovative and controlled products that meet the growing demand.
At the time of writing, FTT, the native exchange’s inactive token, is trading at $3, following a broader market correction with a decline of nearly 11%.
Featured image from DALL-E, chart from TradingView.com