Backpack's FTX EU Acquisition Faces Legal Hurdles

The announcement of Backpack's acquisition of FTX EU for $32.7 million encountered challenges, as FTX quickly clarified that no binding agreement was finalized, highlighting the need for creditor and court approval due to ongoing bankruptcy proceedings. Despite Backpack stating regulatory approval from the Cyprus Securities and Exchange Commission, FTX disputes the transfer, emphasizing that the U.S. Bankruptcy Court did not authorize the sale. Backpack, founded by former FTX employees, aims to leverage FTX EU's MiFID II license to become a leading provider of regulated crypto derivatives in the European Union. The acquisition, once verified, would allow Backpack to fill a market gap by offering perpetual futures trading, a product seeing high global volumes. The company has committed to returning customer funds as a priority before commencing operations, with plans to launch in early 2025. This move is expected to reshape the European crypto market, particularly amidst regulatory shifts favoring cryptocurrency adoption.