BACKPACK EXCHANGE ACQUIRES FTX EU, PLANS Q1 2025 LAUNCH

The cryptocurrency landscape is constantly evolving, marked by both innovation and, unfortunately, instances of significant market disruption. Backpack Exchange Acquires FTX EU, Plans Q1 2025 Launch: Customer Restitution and Future Outlook. The acquisition of FTX EU by Backpack Exchange, a relatively new entrant to the cryptocurrency exchange market, marks a significant event in the evolving landscape of digital asset trading platforms.One of the most notable of these disruptions was the collapse of FTX, which sent shockwaves through the industry.Now, a new chapter is unfolding as Backpack Exchange, a centralized cryptocurrency exchange (CEX) founded by former Alameda Research and FTX employees, steps in to acquire FTX EU, the former European arm of the defunct exchange. As part of the deal, Backpack EU will take responsibility for distributing funds to FTX EU customers as part of the court-approved bankruptcy claims process. Backpack EU to go live in Q1 of 2025. Backpack Exchange is committed to returning FTX EU customers funds as fast and as safely as possible, its CEO Armani Ferrante said.This acquisition, valued at $32.7 million, has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), paving the way for Backpack to expand its services within the European Union.With a planned relaunch in Q1 2025, Backpack aims to become a leading regulated provider of crypto derivatives, specifically perpetual futures, in Europe, leveraging FTX EU's existing MiFID II license. The acquisition was approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), the regulatory agency in Cyprus, where FTX EU was based. While the license is currently suspended following FTX s collapse, Backpack plans to reactivate it and launch Backpack EU in the first quarter of 2025.Furthermore, Backpack Exchange is committed to returning FTX EU customers funds as fast and as safely as possible, and will be responsible for distributing court-approved bankruptcy claims to FTX EU customers as part of the acquisition.What does this mean for the future of crypto trading in Europe, and what can former FTX EU users expect?

Backpack Exchange: A New Player in the Crypto Arena

Backpack Exchange, while a relatively new entrant to the cryptocurrency exchange market, brings a unique perspective and a commitment to regulatory compliance. Backpack, a centralizedFounded by individuals with prior experience at Alameda Research and FTX, the exchange aims to learn from the mistakes of the past and build a more secure and transparent platform for crypto trading.

The Genesis of Backpack

The founders' background provides both an advantage and a challenge.On one hand, they possess deep understanding of the intricacies of the crypto market and the technological requirements for building a robust exchange.On the other hand, they face the task of rebuilding trust and dispelling any lingering concerns about their previous affiliations.

Backpack's core mission is to provide a fully regulated global cryptocurrency exchange. Backpack Exchange, a centralized cryptocurrency exchange founded by former Alameda Research and FTX employees, has acquired FTX EU, the former European arm of the now-defunct FTX exchange. This acquisition has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), allowing Backpack to expand itsThis emphasis on regulation is a key differentiator, particularly in the wake of FTX's collapse, which highlighted the importance of robust regulatory oversight in the crypto space.

The Acquisition of FTX EU: A Strategic Move

The acquisition of FTX EU is a strategic move for Backpack Exchange, offering several key benefits:

• Expansion into the European Market: It provides Backpack with immediate access to the European Union market, a region with significant potential for crypto adoption.
• Regulatory Compliance: FTX EU holds a MiFID II license, a crucial regulatory requirement for offering financial services, including crypto derivatives, in the EU. cointelegraph.com: Backpack EU will be responsible for distributing court-approved FTX bankruptcy claims to FTX EU customers as part of the acquisition.Reactivating this license will significantly expedite Backpack's entry into the market.
• Customer Base: While FTX EU's operations were suspended following FTX's bankruptcy, the acquisition provides Backpack with the potential to re-engage with existing users and offer them a new platform for trading.
• Reputation Recovery: The relaunch provides an opportunity to build confidence in the market for both the exchange and the crypto market at large.

FTX EU's History: From DAAG to Backpack EU

To fully understand the significance of this acquisition, it's important to consider the history of FTX EU.Initially known as Digital Assets AG (DAAG), the company was acquired by FTX in 2025 for a substantial $323 million.Following the collapse of FTX in November 2025, FTX EU's future was uncertain, attracting multiple potential buyers, including Coinbase.

The acquisition by Backpack marks a new chapter for the company, offering a chance to revitalize its operations under a new brand and leadership. New Acting CFPB Chief Halts Investigations and Enforcements, FebruThe company confirmed that FTX EU, which will become Backpack EU, will launch officially in Q1 2025.

The Road to Relaunch: Q1 2025

Backpack Exchange has ambitious plans for the relaunch of FTX EU as Backpack EU in the first quarter of 2025. Backpack Exchange has acquired FTX EU for $32.7 million with regulatory approval from Cyprus and the FTX bankruptcy court. With a launch in Q1 2025, Backpack aims to become Europe s sole regulated provider of perpetual futures, leveraging its MiFID II license.This timeline is contingent on the successful reactivation of the MiFID II license, which is currently suspended.The exchange is working diligently to meet all regulatory requirements and ensure a smooth and compliant relaunch.

Key Steps for the Relaunch

1. License Reactivation: Securing the reactivation of the MiFID II license is the top priority. Backpack Exchange acquires FTX EU, expanding its global presence and planning to launch regulated crypto trading services in the European Union in Q1 2025.This involves working closely with CySEC to demonstrate compliance with all relevant regulations.
2. Platform Development: Integrating Backpack's technology and security infrastructure with the existing FTX EU platform.This includes rigorous testing to ensure a secure and reliable trading environment.
3. Customer Communication: Communicating clearly and transparently with former FTX EU customers about the relaunch plans, including how they can access their assets and participate in the new platform.
4. Partnership Building: Forming partnerships with key players in the European crypto ecosystem to expand the reach and adoption of Backpack EU.
5. Market Awareness: Clearly communicate the new exchange's mission, values and compliance standards to build trust with users.

Focus on Perpetual Futures: A Unique Offering

Backpack Exchange aims to differentiate itself in the European market by focusing on crypto derivatives, particularly perpetual futures.Perpetual futures are a type of derivative contract that allows traders to speculate on the price of a cryptocurrency without an expiration date.They offer potential for high leverage and can be used for both hedging and speculative trading.

Why Perpetual Futures?

The decision to focus on perpetual futures is driven by several factors:

• Growing Demand: There is increasing demand for crypto derivatives among sophisticated traders.
• Potential for Innovation: Backpack aims to innovate in the perpetual futures space by offering unique features and trading tools.
• Revenue Opportunities: Derivatives trading can generate significant revenue for exchanges through trading fees and other services.

Returning Funds to FTX EU Customers: A Priority

A crucial aspect of Backpack's acquisition of FTX EU is its commitment to returning funds to former FTX EU customers.As part of the deal, Backpack EU will be responsible for distributing court-approved bankruptcy claims to these customers. Backpack, a centralized cryptocurrency exchange (CEX) founded by former Alameda Research and FTX employees, has acquired FTX EU, the former European arm of the defunct FTX exchange.The acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), paCEO Armani Ferrante has stated that Backpack Exchange is committed to returning FTX EU customers funds as fast and as safely as possible.

The Bankruptcy Claims Process

The process for distributing bankruptcy claims is complex and subject to court approval.Former FTX EU customers will need to follow specific procedures to file their claims and receive their allocated funds.Backpack Exchange will provide clear and detailed information on this process to ensure that customers can navigate it effectively.

This commitment to restitution is essential for restoring trust in the crypto industry and demonstrating Backpack's commitment to ethical business practices.

Regulatory Landscape in Europe: MiFID II and Beyond

The European Union has been actively working to establish a comprehensive regulatory framework for cryptocurrencies. FTX EU s Ownership History. FTX EU, initially known as Digital Assets AG (DAAG), was acquired by FTX in 2025 for $323 million. Following the collapse of FTX in November 2025, FTX EU attracted multiple suitors, including companies like Coinbase, which attempted to acquire it over the course of 20. Eventually, Backpack, a newerThe Markets in Financial Instruments Directive II (MiFID II) is a key piece of legislation that governs financial services in the EU, including those related to crypto assets.This is the license that Backpack is seeking to reactivate.

MiCA: A New Era for Crypto Regulation

In addition to MiFID II, the EU is also implementing the Markets in Crypto-Assets (MiCA) regulation, which will provide a harmonized framework for regulating crypto assets across the EU member states.MiCA is expected to come into effect in 2024 and will have a significant impact on the crypto industry in Europe.Although MiCA wasn't previously in place, MiFID II has set important regulatory foundations.

Backpack Exchange's commitment to regulatory compliance positions it well to navigate the evolving regulatory landscape in Europe and build a sustainable business in the region.

Challenges and Opportunities Ahead

While Backpack Exchange's acquisition of FTX EU presents significant opportunities, it also faces several challenges:

Rebuilding Trust

The collapse of FTX has eroded trust in the crypto industry, particularly among retail investors. HANOVER, Germany, Jan. 7, 2025 /PRNewswire/ - Backpack Exchange, a fully regulated global cryptocurrency exchange, today announced the successful acquisition of FTX EU, the MiFID II-licensedBackpack Exchange needs to work diligently to rebuild this trust by demonstrating transparency, security, and a commitment to regulatory compliance.This can be accomplished by making audits and security measures publicly available for scrutiny.

Competition

The cryptocurrency exchange market is highly competitive, with established players like Coinbase and Binance vying for market share. The exchange confirmed that FTX EU, which will become Backpack EU, will launch officially in Q1 2025. A Bloomberg report valued the acquisition at about $32.7 million, mentioning that the move will avail the exchange s derivatives options throughout the EU region.Backpack Exchange will need to differentiate itself by offering unique products, services, and customer experiences.

Regulatory Uncertainty

The regulatory landscape for cryptocurrencies is constantly evolving, and there is still uncertainty about the long-term regulatory framework.Backpack Exchange needs to stay abreast of regulatory developments and adapt its operations accordingly.

Potential for Growth

Despite these challenges, Backpack Exchange has the potential for significant growth in the European market.The demand for crypto assets is increasing, and there is a growing need for regulated and secure trading platforms.By focusing on regulatory compliance, innovation, and customer satisfaction, Backpack Exchange can establish itself as a leading player in the European crypto space.

Here are some key factors that could contribute to Backpack's success:

• Strong Leadership: Experienced leadership with a clear vision and a commitment to ethical business practices.
• Innovative Technology: Cutting-edge technology that provides a secure, reliable, and user-friendly trading experience.
• Customer-Centric Approach: A focus on providing exceptional customer service and building strong relationships with users.
• Strategic Partnerships: Collaborating with key players in the European crypto ecosystem to expand reach and adoption.

What Does This Mean for Former FTX EU Customers?

The acquisition of FTX EU by Backpack Exchange offers a glimmer of hope for former FTX EU customers who have been impacted by the exchange's collapse. Reported by The Block: Backpack Exchange, founded by former FTX and Alameda Research employees, has acquired FTX EU the European arm of the crypto exchange that infamously collapsed in late 2025.U.S. spot Bitcoin and Ethereum ETFs attracted more than $1.1 billion in combined net inflows on Monday, helping bitcoin to briefly reclaim the $100,000 level before Tuesday s correction.CFTCWhile the bankruptcy claims process can be lengthy and complex, Backpack's commitment to distributing court-approved claims is a positive step.

Key Takeaways for FTX EU Customers

• Stay Informed: Monitor official announcements from Backpack Exchange and the FTX bankruptcy court for updates on the claims process.
• Gather Documentation: Collect all relevant documentation related to your FTX EU account, including transaction history, account statements, and identification documents.
• Follow Instructions Carefully: Carefully follow the instructions provided by Backpack Exchange and the bankruptcy court for filing your claim.
• Seek Professional Advice: If you have any questions or concerns, consider seeking advice from a legal or financial professional.

The Future of Crypto Exchanges: Regulation and Transparency

The acquisition of FTX EU by Backpack Exchange underscores the importance of regulation and transparency in the cryptocurrency industry. 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.The collapse of FTX served as a stark reminder of the risks associated with unregulated exchanges and the need for robust regulatory oversight.

Key Trends Shaping the Future of Crypto Exchanges

• Increased Regulation: Governments around the world are increasingly focused on regulating cryptocurrencies and crypto exchanges.
• Enhanced Security: Crypto exchanges are investing heavily in security measures to protect user funds and prevent hacking attempts.
• Greater Transparency: Exchanges are becoming more transparent about their operations, including their reserves, trading practices, and risk management policies.
• Focus on Compliance: Exchanges are prioritizing compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Conclusion: A New Beginning for FTX EU and the Crypto Market

Backpack Exchange's acquisition of FTX EU represents a significant development in the cryptocurrency market.It offers a chance to revitalize a dormant exchange, provide restitution to former FTX EU customers, and introduce a new, regulated player to the European market. Backpack Exchange acquires FTX EU, plans Q1 2025 launch dfmines Cryptocurrency News JanuWhile challenges remain, Backpack's commitment to regulatory compliance, innovation, and customer satisfaction positions it well for success. Janu As part of the acquisition, Backpack EU will be responsible for distributing court-approved bankruptcy claims to FTX EU customers. Post Views: 136As the crypto industry continues to evolve, regulation and transparency will be essential for building trust and fostering sustainable growth.The Q1 2025 launch will be a crucial test of Backpack's vision and its ability to deliver on its promises. The centralized crypto exchange Backpack announced on January 7 that it had successfully acquired the defunct crypto exchange FTX s European branch, FTX EU. The exchange confirmed that FTX EU, which would become Backpack EU, would launch officially in Q1 2025.Time will tell if Backpack can truly become Europe's sole regulated provider of perpetual futures and help mend the broken trust in the wake of FTX's demise, but its focus on responsible innovation and regulatory compliance offers a promising path forward.The most important thing to remember is that Backpack Exchange will provide further information on its support channel, such as how new users may sign up and how FTX EU customers can access their assets.