Former European organ of bankrupt cryptocurrency exchange, FTX is set to commence operations in the first quarter of 2025. As revealed, FTX EU will resume trading activities following its acquisition by Backpack, a centralized cryptocurrency exchange established by former employees of Alameda Research and FTX. 

More so, the takeover deal which is worth $32.7 million is an attempt by Backpack to establish its presence in Europe. Meanwhile, the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC) approved the deal. 

It is worth mentioning that FTX EU holds a MiFID II license from the Cyprus Securities and Exchange Commission (CySEC). Backpack through the new EU organ will provide access to an array of crypto derivative products and perpetual futures. 

The deal finally brings an end to the uncertainty surrounding the future of the exchange. FTX EU has a long history of ownership takeover tussles with various crypto firms including Coinbase aimed to acquire the firm in the past. 

The exchange initially started operations as a Swiss company with the name Digital Assets AG (DAAG). However, FTX acquired the trading platform in 2021 for $323 million with the intention of expanding into Europe. 

Backpack to Reimburse Affected Users of FTX EU

Further, Backpack will take up the responsibility of reimbursing funds to affected users of FTX EU. The repayment is part of the approved bankruptcy claims process by the court. 

According to Armani Ferrante, the CEO of Backpack, the exchange is committed to repaying customers as fast as possible. The CEO emphasized that the repayment process will be secure to ensure that the creditors get their funds. 

Ferrante added that reimbursement is an important step to help regain users’ trust and re-establish confidence. Recall that in late 2024, the CySEC extended the suspension on FTX EU for another six months, deterring the exchange from offering any digital asset services. 

Despite the ban, the regulatory body still permits the defunct EU arm of FTX to carry out transactions and repay affected users. Consequently, Backpack will pursue the reactivation of the exchange’s operational license to ensure the launching of the crypto trading platform in Q1 2025. 

As part of its rebuilding process, the exchange intends to avail more information on its support channels, providing details on the registration process and how users can access their funds.  

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