Backpack Exchange Acquires FTX EU in Major Crypto Trading Deal
Backpack Exchange, a crypto trading company founded by former Alameda Research and FTX employees, has made a significant move in the cryptocurrency trading space by acquiring FTX EU, the European arm of Sam Bankman Fried’s cryptocurrency trading empire. The acquisition, which cost Backpack Exchange $32.7 million, marks a new chapter for the company as it expands its presence in the European market.
FTX EU, which held a MiFID II-license under the Cyprus Securities and Exchange Commission (CySEC), will now operate under Backpack Exchange’s ownership. The move positions Backpack Exchange as the only regulated perpetual futures provider across Europe, giving the company a competitive edge in the region’s crypto derivatives market.
Armani Ferrante, CEO of Backpack Exchange, expressed excitement about the acquisition and outlined the company’s plans for its new European arm. He mentioned that Backpack Exchange will offer a full suite of crypto derivatives products in the EU, with a focus on regulated perpetual futures. This strategic approach aligns with the company’s goal of capturing a significant share of the market and establishing itself as a key player in the industry.
The acquisition of FTX EU comes at a time when several crypto trading firms are seeking MiFID licenses to offer crypto-asset services under Europe’s new Markets in Crypto Assets (MiCA) regime. Companies like Bitstamp, Coinbase, and D2X have already received their licenses, with plans to expand their offerings in the coming months. Backpack Exchange’s submission of its MiCA notification signals its commitment to complying with regulatory requirements and operating within the framework of the new regime.
Ferrante also mentioned that Backpack Exchange is working on developing a full suite of products to cater to the diverse needs of its customers. While some products may not be rolled out in the first quarter of 2025, the company is focused on delivering high-quality, innovative solutions to the market.
Backpack Exchange, known for its contributions to the Solana ecosystem and successful ventures in wallet and NFT businesses, raised $17 million in funding last year. The company’s acquisition of FTX EU demonstrates its commitment to growth and expansion in the cryptocurrency trading space.
Overall, the acquisition of FTX EU by Backpack Exchange represents a significant development in the crypto trading industry. With a strong focus on regulatory compliance, product innovation, and market expansion, Backpack Exchange is poised to make a mark in the European market and solidify its position as a leading player in the industry.