From Collapse To Comeback? Ex-FTX And Alameda Employees Acquire European Subsidiary

In a move to bolster its presence in the European market, Backpack Exchange, a crypto trading platform established by former employees of Sam Bankman-Fried’s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million.

As earlier reported by Bloomberg, this acquisition aims to expand Backpack’s derivatives offerings in a region where the regulated crypto derivatives market is increasingly gaining traction.

FTX EU’s Bankruptcy Claims Transferred

FTX EU was one of the units that fell under bankruptcy proceedings following the collapse of the exchange in 2022. As part of the acquisition deal, Dubai-based Backpack will assume responsibility for distributing court-approved bankruptcy claims totaling approximately €53 million ($55 million) to affected FTX EU customers.

The FTX estate had previously pursued legal action to recover millions from the original owners of FTX EU. However, this lawsuit was ultimately dropped as part of a settlement that facilitated the sale of the unit to its co-founders, Patrick Gruhn and Robin Matzke, who then sold it to Backpack.

This acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives trading within the European Union.

The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region.

Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company’s “top priority” following the acquisition. In an interview, he stated, “We will not serve a single user, not serving a single trade in the EU until we have the ability to return customers’ funds.”