The deal, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), allows Backpack to establish a stronger presence in the European Union. The new European entity will provide cryptocurrency derivative services, including perpetual futures, to users across the region.
As part of the agreement, Backpack EU will oversee the distribution of funds to FTX EU customers through a court-sanctioned bankruptcy claims process. The company plans to begin operations in the first quarter of 2025, following the reactivation of its regulatory licence.
CySEC had previously suspended FTX EU’s licence in late 2024 but allowed the platform to continue processing transactions and refunding clients. Backpack has stated its commitment to expediting the return of funds to affected customers.
Regarding these new developments, Backpack’s CEO emphasised the company’s priority of addressing customer restitution. Further details, including user onboarding and asset access for FTX EU customers, will be announced through Backpack’s official communication channels.
The acquisition adds another chapter to the turbulent history of FTX EU, which has seen multiple ownership changes since FTX’s global collapse in November 2022. Originally launched as Digital Assets AG (DAAG), a Swiss company, it was purchased by FTX in 2021 for USD 323 million.
Following FTX’s bankruptcy filing in 2022, several companies, including Coinbase, expressed interest in acquiring FTX EU. In February 2024, the entity was sold back to its original founders for USD 32.7 million.
Founded in 2022, Backpack started as a non-custodial wallet project before expanding into exchange services. The company raised USD 20 million in funding from FTX and Jump Crypto before FTX’s collapse. According to Cointelegraph, despite losing 88% of its operational funds during the FTX crisis, Backpack continued to operate with limited resources.
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