Former FTX executives Backpack exchange expands to 11 US states Former FTX executives Backpack exchange expands to 11 US states
The crypto trading platform recently hit $1 billion daily trading volume.
2 min read
Updated: Feb. 21, 2024 at 2:04 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Amid tightening global crypto regulations, Backpack, a crypto exchange founded by former FTX executives, has broadened its reach to 11 US states, including California, Colorado, Indiana, Missouri, Wyoming, and others.
In a Feb. 21 announcement on the social media platform X (formerly Twitter), the company disclosed its availability to residents within the states above, with CEO Armani Ferrante outlining plans to consolidate the exchange’s presence in the US, saying:
“Today, we beginning our journey to bring Backpack Exchange into the USA. It’ll be slow. It’ll be steady. It’ll be hard. But it’ll be worth it. If we don’t support your state yet, hold on. We’ll get there. This is something that will take years to complete. But we’re committed to doing it right.”
The exchange, currently in its beta phase, facilitates spot trading activities and intends to diversify into derivatives, margin trading, and more as it secures additional licenses globally. It reportedly aims to offer non-custodial-based trading to differentiate itself from traditional crypto exchanges. On Feb. 18, the platform reported $1 billion in daily trading volume.
Backpack was co-founded by Can Sun, former general counsel at FTX, and Ferrante, previously a software developer at Alameda Research.
Sun played a pivotal role as a witness in Sam Bankman-Fried’s trial, revealing that he had no idea the former billionaire was misusing customers’ funds. Ferrante’s crypto infrastructure company, Coral, suffered a loss of $14.5 million due to FTX’s abrupt collapse. FTX Venture reportedly spearheaded a $20 million funding round for Coral mere weeks before the collapse.
Backpack’s licensing
The Backpack Exchange platform boasts multiple licenses across global jurisdictions, including the United Arab Emirates (UAE), Lithuania, Australia, and the United States.
The US Financial Crimes Enforcement Network’s records indicate its initial registration as a Money Services Business (MSB) in numerous US states. Furthermore, it’s duly registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a Digital Currency Exchange (DCE) provider.
In the UAE, it holds accreditation from the Dubai Virtual Assets Regulatory Authority (VARA) as a Virtual Asset Service Provider (VASP). Additionally, it’s registered as a Virtual Currency Exchange Operator and Deposit Virtual Currency Monetary Operator with the Lithuanian Financial Crime Investigation Service (FCIS).
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.