Backpack Exchange, a cryptocurrency platform founded by former FTX and Alameda Research employees, has stepped forward to handle the distribution of bankruptcy claims for FTX EU customers. The process follows a court-approved settlement aimed at compensating affected users.
FTX EU Customers to Receive Restitution
“Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible,” said Backpack Exchange CEO Armani Ferrante.
The exchange, which achieved a valuation of $120 million in its Series A funding round in early 2024, secured critical regulatory approvals to facilitate its expansion. With licenses from the Dubai Virtual Assets Regulatory Authority and a MiFID II license for the European Union, Backpack is positioning itself as a key player in the global cryptocurrency market.
Backpack EU to Offer Crypto Derivatives in 2025
As part of its European strategy, Backpack Exchange is launching a new arm, Backpack EU, in the first quarter of 2025. The platform will offer crypto derivatives, including perpetual futures, while supporting Single Euro Payments Area (SEPA) payments and wire transfers in major European currencies.
This move coincides with the European Union’s rollout of the Markets in Crypto-Assets (MiCA) regulation, a comprehensive framework designed to enhance consumer protection and establish clear guidelines for virtual asset service providers.
Ferrante highlighted the significance of obtaining a MiFID II license amid increasing challenges for global exchanges in the European market. “As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards,” he said.
A Comeback Rooted in FTX’s Legacy
Ferrante’s connection to FTX runs deep. He co-founded Coral, the company behind Backpack’s trading and wallet infrastructure, with funding from Jump Crypto and FTX Ventures in 2022. Much of that funding, however, disappeared in FTX’s infamous collapse.
FTX filed for bankruptcy in November 2022, leaving a trail of financial devastation. Its founder, Sam Bankman-Fried, faced conviction on multiple criminal charges in 2023 and 25 years prison sentence.
