- Backpack Exchange acquires FTX EU for $32 million, gaining MiFID II License for EU operations.
- FTX creditors to receive 118% of investments, with payouts expected between $14.7B and $16.5B.
- Backpack Exchange plans to integrate SEPA payments and relaunch by Q1 2025.
Backpack Exchange, a crypto trading platform founded by former FTX and Alameda Research employees, has announced its acquisition of FTX EU for $32 million. This move follows regulatory approvals from the FTX bankruptcy Court and the Cyprus Securities and Exchange Commission (CySEC), positioning Backpack for greater expansion within the European Union.
The acquisition includes the transfer of FTX EU’s MiFID II License, allowing Backpack to provide regulated services across the EU. Backpack’s priority will be returning all customer EURO funds held by FTX EU, followed by the rollout of spot, margin, and futures trading products.
EU Crypto Regulation Efforts and MiCA Impact
FTX EU had been suspended by CySEC since late 2024, restricting its services but continuing transactions and customer fund returns. With this new acquisition, Backpack will focus on returning funds to affected users, a crucial step in restoring confidence in the platform. Armani Ferrante, CEO of Backpack Exchange, emphasized the importance of swiftly repaying FTX EU customers.
The deal also highlights the EU’s increasing efforts to regulate crypto through frameworks like MiCA. With the MiCA standards, multiple international exchanges are reevaluating their regional operations. Backpack’s entry marks a significant moment as many exchanges are exiting or adjusting their operations to comply with new regulations.
On January 3, 2025, FTX officially began its reorganization plan, confirming the start of payments to Convenience Class creditors. Kraken and BitGo will manage this first phase, with distribution expected to conclude within 60 days. FTX outlined that failure to meet pre-distribution requirements may result in repayment delays or forfeiture of claims.
The total payout for FTX creditors is projected to be between $14.7 billion and $16.5 billion, potentially providing customers with around 118% of their initial investments. This large-scale distribution could lead to significant bullish momentum in the crypto market, with funds flowing back into the sector.
Armani Ferrante noted the strategic importance of the acquisition, emphasizing that becoming a MiFID II-licensed entity would help the platform meet high regulatory standards. Backpack EU is also set to offer seamless integration with traditional payment systems, including low-cost SEPA payments and wire transfers. The re-activation of Backpack’s license is underway, with plans for the platform to go live in Q1 2025.
Read More: FTX Bankruptcy Plan Approved: Key Details on January 2025 Payouts and Claim Process
