{"id":6599,"date":"2025-01-08T08:32:42","date_gmt":"2025-01-08T08:32:42","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6599"},"modified":"2025-01-08T08:32:42","modified_gmt":"2025-01-08T08:32:42","slug":"from-collapse-to-comeback-ex-ftx-and-alameda-employees-acquire-european-subsidiary","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6599","title":{"rendered":"From Collapse To Comeback? Ex-FTX And Alameda Employees Acquire European Subsidiary"},"content":{"rendered":"
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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\u2019s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million.\u00a0<\/p>\n

As earlier reported <\/a>by Bloomberg, this acquisition aims to expand Backpack\u2019s derivatives offerings in a region where the regulated crypto derivatives market is increasingly gaining traction.<\/p>\n

FTX EU\u2019s Bankruptcy Claims Transferred<\/h2>\n

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 <\/a>claims totaling approximately \u20ac53 million ($55 million) to affected FTX EU customers.<\/p>\n

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.<\/p>\n

This acquisition is particularly noteworthy as FTX EU holds a MiFID II license, allowing it to offer crypto derivatives<\/a> trading within the European Union.\u00a0<\/p>\n

The transaction has received approval from the Cyprus Securities and Exchange Commission, paving the way for Backpack to operate legally in the region.<\/p>\n

Armani Ferrante, the CEO of Backpack, emphasized that returning funds to customers is the company\u2019s \u201ctop priority\u201d following the acquisition. In an interview, he stated, \u201cWe will not serve a single user, not serving a single trade in the EU until we have the ability to return customers\u2019 funds.\u201d\u00a0<\/p>\n

A Rising Star In Crypto?\u00a0<\/h2>\n

Founded in 2022, Backpack has already made a mark in the industry. Ferrante, who previously worked at Alameda Research and played a pivotal role in developing the Solana blockchain<\/a>, brings valuable experience to the table. <\/p>\n

Co-founder Tristan Yver also has a background as a former executive at FTX. Backpack secured a virtual-asset service provider license in Dubai and is currently pursuing a license to operate in Japan, having raised $17 million last year at a valuation of $120 million.<\/p>\n

With the acquisition of FTX EU, Backpack is positioned to offer regulated crypto derivatives products, including perpetual swaps\u2014futures contracts<\/a> that do not expire\u2014across the European Union.\u00a0<\/p>\n

The regulated crypto derivatives market in Europe has become increasingly appealing to various crypto firms, as evidenced by Coinbase Global Inc.\u2019s recent acquisition of a Cyprus-based brokerage unit, which also secured a MiFID II license.<\/p>\n

\u201cDerivatives make up an enormous amount of crypto trading volume,\u201d Ferrante remarked, expressing enthusiasm for the opportunity to reintegrate crypto derivatives trading in the EU.\u00a0<\/p>\n

As the market evolves, firms like Backpack are poised to play a crucial role in shaping the future of crypto trading <\/a>by offering innovative and regulated products that cater to the growing demand.<\/p>\n

\"FTX\"<\/p>\n

At the time of writing, FTT, the defunct exchange\u2019s native token, is trading at $3, following the broader market correction with a drop of nearly 11%.\u00a0<\/p>\n

Featured image from DALL-E, chart from TradingView.com<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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\u2019s FTX and Alameda Research, has acquired the European entity of the defunct FTX exchange for $32.7 million.\u00a0 As earlier reported by Bloomberg, this acquisition aims to expand Backpack\u2019s derivatives offerings in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6599","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6599"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6599\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}