Backpack Exchange Acquires FTX EU for $32.7M
FTX EU, the European division of Sam Bankman-Fried’s defunct crypto empire, has been acquired by Backpack Exchange—a company founded by former employees of Alameda Research and FTX—for $32.7 million.
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Customer Fund Recovery and Expansion Plans
After finalizing the acquisition, Backpack Exchange released a statement on its official account:
Backpack has acquired FTX EU and its MiFID II License. Our first priority is to return all customer EURO funds on behalf of the FTX estate, followed by rolling out a full suite of spot, margin, and futures trading products. Crypto perps trading is coming back to Europe.
Backpack is focused on resolving outstanding issues for FTX EU clients while strengthening its foothold in the European cryptocurrency market.
In a statement to journalists, Backpack CEO Armani Ferrante outlined the company’s priorities:
Even though a few firms have been able to acquire approval for a limited form of a derivatives license, we’re not aware of any players that currently offer perpetuals and are live in the EU, including Coinbase and Bitstamp,
Ferrante said.
After reimbursing FTX EU clients, Backpack plans to roll out a regulated perpetual futures trading product as its flagship offering, Ferrante added.
He also confirmed that Backpack has filed a notification under the MiCA framework and aims to launch operations in the first quarter of 2025.
The Career of Armani Ferrante
Armani Ferrante, known in the crypto community as “Mad Armani,” is a seasoned software engineer with extensive experience. He began his career at Apple before pivoting to blockchain technology in 2017, diving deeply into the Ethereum ecosystem.
Ferrante’s contributions to open-source projects caught the attention of Alameda Research, where he played a key role in developing innovative technological solutions.
As an early supporter of Solana, Ferrante urged Alameda Research’s leadership to recognize the blockchain’s potential. He went on to found Coral, a company dedicated to creating Solana-based solutions, and launched Backpack, a platform that combines all essential crypto tools in one interface.
Anything that you want to do in crypto, quite literally, can be done inside of Backpack,
Ferrante remarked.
In September 2022, Coral raised $20 million from prominent investors, including Jump Crypto and FTX Ventures.
However, just weeks later, the collapse of FTX dealt a severe blow, with Ferrante losing approximately $14.5 million. Despite this financial disaster, he adopted a rigorous cost-saving strategy, which allowed him to keep Backpack afloat.
By February 2024, Backpack’s valuation had climbed to an impressive $120 million.
Armani Ferrante presenting Backpack at the Solana SMS Saga Event. Source: coindesk.com
Related: Armani Ferrante: From Losing $14.5M to Creating xNFT and Backpack
A New Era for FTX EU
The acquisition of FTX EU marks a crucial step for Backpack Exchange in its quest to establish a strong foothold in the European cryptocurrency market. With its newly secured MiFID II license and plans to roll out regulated perpetual futures trading products, Backpack is well-positioned to become a key player in the region.
For FTX EU clients, the deal offers renewed hope for the recovery of their funds, while giving Armani Ferrante a chance to address the missteps of his former investors and chart a path forward.
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