- Backpack’s acquisition of FTX EU expands its services across the European Union.
- CEO Ferrante emphasizes swift restitution to rebuild trust in the crypto industry.
- FTX EU’s ownership history highlights multiple attempts before Backpack’s acquisition.
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 Backpack’s 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.
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 EU’s 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.
Read also: FTX’s Former General Leads Backpack Exchange Launch: Report
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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