Europe Gets a Regulated Crypto Powerhouse—Built from FTX’s Ashes

Backpack, a cryptocurrency trading platform built by former members of the FTX team, has officially launched its European subsidiary, Backpack EU, offering regulated perpetual futures trading. The platform, licensed under the European Union’s MiFID II framework and headquartered in Cyprus, marks one of the first fully regulated venues in Europe to provide crypto derivatives. CEO Armani Ferrante emphasized that Backpack aims to establish itself as a compliant and transparent alternative to other crypto exchanges in the region. Ferrante noted that, at this stage, Backpack and Kraken are the only platforms in Europe offering perpetual futures.

Backpack’s launch follows its acquisition of FTX EU, a division of the now-defunct FTX exchange, earlier this year. The company faced initial resistance from the FTX bankruptcy estate, which initially contested the legality of the acquisition. However, the issue was resolved in April 2025, and Backpack began returning customer funds to those affected by the FTX collapse. Since May 2025, the platform has been distributing claims to former FTX EU users, a move aimed at rebuilding trust and restoring confidence in the company’s operations. By midsummer, refunds had been processed, with customers receiving payouts as part of the firm’s commitment to accountability.

The platform now supports trading across over 40 pairs with up to 10x leverage. Backpack EU is operating under the name Trek Labs Europe and holds a license issued by the Cyprus Securities and Exchange Commission (CySEC) in June 2025. The company also reached a settlement with CySEC for €200,000 (approximately $235,000) to reinstate its regulatory approval after the original license was suspended in late 2022 following the FTX collapse. The regulatory clarity provided by the EU’s MiFID II framework and the upcoming Markets in Crypto-Assets Regulation (MiCA) has allowed Backpack to operate legally across multiple EU countries.

Backpack’s strategy is rooted in transparency and compliance. The platform publishes daily validator attestations using zero-knowledge proofs as part of its proof-of-reserves system. Ferrante emphasized that trust is built over time through consistent and ethical behavior, a lesson the team learned from the FTX crisis. The company has processed over $160 billion in trading volume globally since 2024, reflecting its growing influence in the crypto derivatives market. Ferrante has also expressed ambitions to expand into Japan and, eventually, the U.S., positioning Backpack as a key player in the global crypto trading landscape.

Backpack’s emergence in the European market comes at a time when global regulators are increasingly imposing stricter rules on digital asset derivatives. The company’s focus on regulatory compliance and transparency aims to serve both retail and institutional traders while addressing long-standing concerns about the crypto industry’s volatility and lack of oversight. With plans to introduce new products and trading pairs in the future, Backpack is positioning itself not only as a trading platform but also as a model for regulated crypto exchanges in an evolving market landscape.