In a bold move to reshape the European cryptocurrency market, Backpack Exchange has taken over the EU operations of the defunct FTX exchange. This acquisition has been sanctioned by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission, positioning Backpack Exchange to distribute court-approved claims to FTX users across Europe.
What Are Backpack Exchange’s Ambitious Plans?
Founded by former employees of FTX and Alameda, Backpack Exchange aims to achieve significant growth. The platform secured a $120 million valuation during its Series A funding in 2024 and is now fortified with a MiFID II license to operate in European markets.
How Does Backpack Exchange Plan to Operate?
Scheduled to go live in the first quarter, Backpack EU will offer SEPA payments and support major European currencies for remittances. Furthermore, the platform plans to introduce cryptocurrency derivatives and perpetual contracts to enhance trading options.
Armani Ferrante, a Backpack Exchange founder, had previously sought $20 million for a venture named Coral, which unfortunately incurred losses during the FTX incident. Nevertheless, Coral’s technology has now become instrumental in developing Backpack’s trading and wallet services.
- Backpack Exchange aims to restore FTX users’ confidence by distributing bankruptcy claims.
- With a MiFID II license, the exchange is well-positioned for compliance and growth.
- The launch of Backpack EU promises innovative trading options and wider currency support.
The climate following FTX’s collapse has prompted increased regulatory scrutiny in the European cryptocurrency sector. With former CEO Sam Bankman-Fried now facing a lengthy prison sentence for fraud, the focus shifts to how new platforms like Backpack Exchange will navigate this transformed landscape.
