By Bitwave 
In a significant move, Backpack, a centralized cryptocurrency exchange (CEX) founded by former Alameda Research and FTX employees, has acquired FTX EU, the former European arm of the defunct FTX exchange. The acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), paving the way for Backpack to expand its footprint in the European Union.
A New Chapter for FTX EU
The acquisition comes after a tumultuous period for FTX EU, which was initially known as Digital Assets AG (DAAG) before being acquired by FTX in 2021 for $323 million. Following the collapse of the global FTX exchange in November 2022, FTX EU has attracted several crypto businesses seeking to acquire it.
Key Facts About FTX EU’s Acquisition
- The acquisition was approved by the FTX bankruptcy court and CySEC.
- Backpack will offer a suite of crypto derivative services across the EU, including perpetual futures.
- As part of the deal, Backpack EU will take responsibility for distributing funds to FTX EU customers as part of the court-approved bankruptcy claims process.
Backpack’s Plans for FTX EU
The company’s new European entity is expected to go live in the first quarter of 2025. In preparation for this milestone, Backpack has committed to returning FTX EU customers’ funds as fast and safely as possible.
"Customer restitution is a crucial step to rebuild trust and confidence in the industry," said Armani Ferrante, CEO of Backpack Exchange.
A History of Changing Ownership
The acquisition marks another chapter in the long history of changing ownership for FTX EU. In 2024, FTX agreed to sell FTX EU back to its founders for $32.7 million. Before this, several companies, including Coinbase, had attempted to acquire FTX Europe.
Backpack’s Founding Story
Backpack was founded in 2022 by Solana developer Armani Ferrante, who secured $20 million in funding from FTX and Jump Crypto to build the exchange. Ferrante started by launching the non-custodial Backpack Wallet before founding the company. Another Backpack co-founder, Tristan Yver, spent at least two years with FTX before leaving the company in May 2022.
The Future of Crypto Derivatives
Backpack’s acquisition of FTX EU and plans to offer a suite of crypto derivative services across the EU are significant steps forward for the industry. As the landscape continues to evolve, it will be interesting to see how Backpack’s efforts contribute to rebuilding trust and confidence in the market.
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