The centralized crypto exchange Backpack announced on January 7 that it had successfully acquired the European branch of the defunct FTX, FTX EU. 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.
The bankruptcy courts handling the FTX case and the Cyprus Securities and Exchange Commission approved Backpack’s FTX EU purchase. The exchange explained that the regulatory approval that Backpack has received during the process will enable it to offer regulated services for users in the EU.
Backpack further highlighted the regulatory action taken by the region to halt services from unregulated offshore crypto exchanges. The bans come after the EU introduced its comprehensive crypto regulatory framework, the Markets in Crypto-Assets Regulation (MiCA), on December 30.
The exchange’s CEO, Armani Ferrante, reiterated that Backpack’s choice to enter the EU markets while most international exchanges are leaving the region will be crucial to the success of its EU operations. Ferrante stated that Backpack plans to acquire a MiFID II license to facilitate regulated crypto derivatives services in the region.
MiCA standards are pushing multiple exchanges and crypto-related companies to seek a MiCA license. A Bretton Woods Committee report from July 1 revealed that international exchanges planned to phase out of the EU region before MiCA’s launch or to delist tokens that did not meet MiCA standards. Tether’s USDT is among the tokens affected by delisting, exiting the EU crypto markets on December 30, 2024.
Backpack takes over FTX EU’s customer repayment plans
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 🇪🇺 pic.twitter.com/ExxYFufZHj
— Backpack 🎒 (@Backpack) January 7, 2025
Backpack announced it would take over the FTX EU customer repayment plan after its launch. The exchange’s CEO explained that sanctioning the repayments quickly and securely is among its top priorities after the takeover.
Ferrante further shared that the repayment plan’s success will help the exchange build trust and confidence in digital asset service providers in the EU.
The exchange’s customer support team advised customers to create an account with Backpack EU to receive the payments. Backpack also assured FTX EU customers that they will receive an email detailing the repayment plan once the distributions begin. The exchange confirmed that customers will need the same email address they used during their FTX EU claims.
Backpack noted that it will only handle claims related to the FTX EU and not other FTX entities. The exchange also informed customers that the bankruptcy court would determine the repayment proceedings for FTX EU. The crypto service provider explained that the bankruptcy court would also determine the amount every customer received.
FTX begins its reorganization plan
The FTX Debtors Plan of Reorganization is effective today, January 3, 2025. Today is also the initial distribution record date for holders of allowed claims in the Plan's Convenience Classes. Separate record and payment dates for other classes of claims will be announced later.
— FTX (@FTX_Official) January 3, 2025
FTX announced on its official X page on January 3 that the defunct exchange had begun its reorganization plan. The exchange confirmed it had started sending payments to Convenience Class creditors with claims under $50,000. FTX also revealed that Kraken and BitGo would handle the first distribution phase of the reorganization plan, which is expected to end in 60 days.
The exchange urged creditors to ensure they meet all the requirements for inclusion in the repayment plan. FTX also explained that any delays in submissions or failure to meet all the pre-distribution requirements would lead to notable repayment delays. The crypto firm further highlighted that customers who fail to complete the pre-distribution requirement within 6 months after the initial distribution date may have to forfeit their repayment rights.
The FTX reorganization plan is expected to distribute between $14.7 billion and $16.5 billion to all its creditors, which is speculated to give customers about 118% of their original investment in the now-defunct exchange. weRate’s co-founder Quinten Francois speculated that the funds going to creditors might flow back into crypto, triggering bullish momentum.
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