Backpack Acquires FTX EU, Crypto Derivatives Launch by Q1 2025

Backpack, the crypto exchange founded by former Alameda Research and FTX employees, has acquired FTX EU. This acquisition allows Backpack to expand its services in the European Union with plans to offer crypto derivatives, including perpetual futures, starting in Q1 2025.

Backpack to Handle FTX EU Customer Restitution

A key part of this acquisition is Backpacks commitment to handling the bankruptcy claims process for FTX EU customers. Backpack EU will distribute funds to these customers.

CEO Armani Ferrante stressed the importance of returning customer funds quickly and securely. “Customer restitution is crucial to rebuilding trust in the industry,” Ferrante said.

We're fully focused on working with all the relevant parties to return customer funds in the EU.

It's our top priority.

If you have an FTX EU claim, we'll announce next steps shortly.

— Armani Ferrante (@armaniferrante) January 7, 2025

The acquisition comes just months after CySEC extended FTX EU‘s suspension, which had prevented the exchange from offering services. Although FTX EU could not offer new services, it could complete transactions and return client funds. Backpack’s ability to do this will be critical in restoring its credibility.

FTX EUs Ownership History

FTX EU, initially known as Digital Assets AG (DAAG), was acquired by FTX in 2021 for $323 million.

Following the collapse of FTX in November 2022, FTX EU attracted multiple suitors, including companies like Coinbase, which attempted to acquire it over the course of 2022 and 2023. Eventually, Backpack, a newer player in the market, emerged as the successful acquirer.

Backpack itself was founded in 2022 by Solana developer Armani Ferrante, who secured $20 million in funding from FTX and Jump Crypto. The company initially launched the non-custodial Backpack Wallet.

Despite the setbacks from the FTX collapse, including a loss of $14.5 million, Backpack has managed to continue operations with minimal funding.

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