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Backpack Exchange has taken over FTX EU, the European division of the collapsed crypto exchange, following approvals from regulators and the bankruptcy court.
This acquisition marks a significant step toward resolving customer claims and reviving operations under a new banner.
Customer Refunds and a Fresh Start
Backpack Exchange will manage the restitution process for FTX EU users, fulfilling court-approved claims from the bankruptcy proceedings. CEO Armani Ferrante stressed the importance of rebuilding trust in the crypto space, pledging swift and secure fund distributions to affected customers.
Expanding into Europe
The newly branded Backpack EU plans to launch in early 2025, offering crypto derivatives and supporting SEPA payments across major European currencies. The move aligns with the introduction of the EU’s MiCA regulation, which sets stringent standards for crypto providers. By securing a MiFID II license, Backpack aims to fill the gap left by international exchanges exiting the European market.
READ MORE: Czech Central Bank Governor Considers Bitcoin for Reserves
A Legacy Tied to FTX
Backpack’s roots trace back to Coral, a crypto infrastructure company co-founded by Ferrante and Can Sun, both former FTX executives. Coral’s initial funding was largely lost in the FTX collapse, but its technology now powers Backpack Exchange.
FTX filed for bankruptcy in late 2022, with founder Sam Bankman-Fried later convicted of fraud and sentenced to 25 years in prison. This acquisition offers FTX EU users a path to recover funds while positioning Backpack as a regulated and innovative player in Europe’s crypto landscape.