Backpack Exchange acquires FTX EU for $32.7 million and will be responsible for distributing $55 million in FTX bankruptcy claims

Backpack Exchange, founded by former FTX and Alameda employees, has acquired the bankrupt FTX's former European entity for $32.7 million to expand its derivatives business in the region. FTX EU was one of the business units that eventually went bankrupt after FTX collapsed in 2022. As part of the acquisition, Dubai-based Backpack will be responsible for distributing the previously court-approved FTX bankruptcy claims of approximately 53 million euros ($55 million) to FTX EU customers. The FTX bankruptcy asset administrator filed a lawsuit in an attempt to recover millions of dollars from the original owner of FTX EU. The lawsuit was eventually dropped as part of a settlement agreement that included the resale of the unit to FTX Europe's co-founders Patrick Gruhn and Robin Matzke. Backpack bought the company from the co-founders. (Bloomberg) Yesterday's news, Backpack Exchange has been approved by the Cyprus Securities and Exchange Commission and the FTX Bankruptcy Court to officially acquire FTX EU. Backpack Exchange will be responsible for distributing the bankruptcy claims of FTX EU users approved by the court. The exchange was valued at $120 million in its Series A financing in early 2024 and has obtained Dubai VARA and EU MiFID II licenses. The newly established Backpack EU is scheduled to go online in the first quarter of 2025 and will provide crypto derivatives trading services, support SEPA payments and wire transfers in major European currencies.