Backpack Exchange Acquires FTX EU to Expand Crypto Derivatives Offerings in Europe

Dubai-based cryptocurrency trading platform Backpack Exchange has finalized the acquisition of FTX EU, the former European arm of the collapsed FTX exchange, for US$32.7 million. The deal is aimed at bolstering Backpack's presence in the European market, particularly in the regulated crypto derivatives sector.

The acquisition includes the management of €53 million (approximately US$55 million) in approved bankruptcy claims for customers affected by FTX EU’s collapse. Disbursements to these customers are anticipated by February 2025, contingent upon the cooperation of banks currently holding these funds.

The transaction, approved by the Cyprus Securities and Exchange Commission, grants Backpack Exchange access to FTX EU’s MiFID II license, enabling it to offer regulated cryptocurrency derivatives trading across Europe. This strategic move positions Backpack to expand its operations in a region where regulatory compliance is increasingly critical for sustained growth.

The deal comes after FTX EU was reacquired by its original co-founders, Patrick Gruhn and Robin Matzke, as part of FTX’s bankruptcy settlement process.

Armani Ferrante, CEO of Backpack Exchange, emphasized that the acquisition prioritizes the recovery of customer funds, highlighting the platform’s commitment to responsible and regulated operations. Ferrante stated that this move reflects a broader strategy to expand Backpack’s footprint in Europe’s growing crypto derivatives market.

As the cryptocurrency industry matures, Backpack’s acquisition of FTX EU underscores a trend of consolidation among key players seeking regulatory licenses and enhanced credibility in competitive markets. The deal positions Backpack as a rising player in the European crypto space, with the potential to capitalize on increasing demand for regulated trading solutions.