Backpack Exchange review
Backpack Exchange is a centralized cryptocurrency exchange that grew out of the Backpack self-custody wallet, built by the team behind the Mad Lads NFT collection, and launched publicly in October 2023. It was co-founded by Armani Ferrante, a former Alameda Research software developer, and Can Sun, FTX's former general counsel, who testified against Sam Bankman-Fried. The exchange offers spot and perpetual futures trading, a borrow/lend market, and native SOL staking, and holds a Dubai VARA Exchange Services License covering spot trading only. In January 2025, Backpack acquired FTX EU for $32.7 million, gaining a Cyprus MiFID II license it used to launch a regulated EU perpetuals exchange in September 2025. It remains a young, comparatively small-volume venue against incumbent exchanges.
Backpack Exchange key facts
- Website: backpack.exchange
- Category: Centralized cryptocurrency exchange (CEX)
- Founded: 2023 (public launch October 2023), by Armani Ferrante and Can Sun
- Headquarters: No single disclosed HQ; UAE entity VARA-licensed in Dubai; EU arm MiFID II-licensed in Cyprus
- Regulatory status: VARA Exchange Services License in Dubai (spot only); MiFID II license in Cyprus via the 2025 FTX EU acquisition
- Products: Spot and perpetual futures trading, borrow/lend (Auto Lend), native SOL staking, self-custody wallet
- Trading fees: Spot about 0.08% maker / 0.10% taker; perpetual futures about 0.02% maker / 0.05% taker, base tier
- Supported assets: Around 50 coins across roughly 50 spot trading pairs
- Notable event: Acquired FTX EU for $32.7M (Jan 2025); launched Backpack EU regulated perpetuals exchange (Sept 2025)
- CEO: Armani Ferrante
- FYI Score: 72.8/100 (ranked #256 of the crypto exchanges we track)
Trading fees
- Spot trading around 0.08% maker / 0.10% taker at the base tier
- Perpetual futures around 0.02% maker / 0.05% taker at the base tier
- Fee tiers recalculated hourly based on 30-day volume, BP token stake, and legacy pre-TGE Mad Lads NFT holdings
- USDT/USDC pair trades at 0% fee and is excluded from volume calculations
Supported assets
- Around 50 listed coins across roughly 50 spot trading pairs
- USDT/USDC is the most active pair on the exchange
- Deposits and withdrawals span 10+ blockchain networks through the integrated Backpack wallet
Products
- Spot trading and cross-margined perpetual futures, up to 10x leverage on the regulated EU venue
- Borrow/lend market with an Auto Lend feature that puts idle collateral to work, including SOL staking yield for lenders
- Native SOL staking
- BP token Participant Program letting long-term stakers convert holdings into direct company equity
Security & regulation
- Holds a VARA (Dubai) Exchange Services License via Trek Labs Ltd FZE, limited to spot trading; futures and margin are explicitly excluded from the license for UAE users
- Acquired FTX EU for $32.7 million in a deal approved by the FTX bankruptcy court and Cyprus' CySEC, announced January 2025; began repaying FTX EU claimants' euro balances from April 2025
- The FTX EU deal brought a MiFID II license, used to launch Backpack EU, a CySEC-regulated perpetuals exchange in Cyprus, in September 2025
- Publishes daily proof-of-reserves attestations using zero-knowledge proofs; offers 2FA, passkey login, and a configurable withdrawal delay
Fiat & payments
- USD deposits and withdrawals via SWIFT wire transfer to/from a personal bank account, or eligible named fintech accounts such as Wise or Revolut
- Fiat services are unavailable in 20+ jurisdictions, including Afghanistan, Iran, North Korea, Russia, Syria and Venezuela
- Backpack EU (the Cyprus-regulated arm) separately offers SEPA and wire transfers in major European currencies
- Core exchange access excludes residents of North Korea, Iran, Cuba, and Russian-occupied Crimea, Sevastopol, Luhansk and Donetsk; Canada, Japan and New Zealand are listed as future expansion markets
Markets
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Platforms
Backpack Exchange (Web), iOS App, Android App, Backpack Wallet (self-custody, Chrome extension)
Who Backpack Exchange is for
Backpack suits traders who want a regulated EU or UAE venue for spot trading, or leveraged perpetuals in the EU specifically, and who are comfortable with a two-year-old platform and a narrow fiat on-ramp limited to SWIFT wire from a personal bank account. It is a weaker fit for traders who want the broadest coin selection or a long, stress-tested operating history.
Pros
- Founding team has unusually direct insider visibility into the FTX collapse: CEO Armani Ferrante is a former Alameda Research developer, and co-founder Can Sun was FTX's general counsel and testified against Sam Bankman-Fried
- One of a small number of venues with a genuine MiFID II license for regulated perpetual futures in the EU, obtained through the 2025 FTX EU acquisition
- Publishes daily zero-knowledge-proof reserve attestations, a transparency practice that is uncommon among exchanges of its size
- Processed more than $160 billion in cumulative trading volume since its 2024 ramp-up, indicating real trader adoption despite the exchange's youth
Cons
- Very young exchange: public launch was October 2023, so its track record and resilience under stress are limited compared with incumbents
- The Dubai VARA license is narrow: it covers spot trading only and explicitly excludes futures and margin products for UAE-based users, even though the exchange offers derivatives elsewhere
- Thin fiat on-ramp on the core exchange: USD support is limited to SWIFT wire from a personal bank account, with fiat services unavailable in 20+ jurisdictions
- Smaller asset selection than tier-1 exchanges: roughly 50 coins and pairs, versus several hundred or more at Binance, Coinbase or OKX
Backpack Exchange FAQ
Who founded Backpack Exchange?
Backpack was founded by Armani Ferrante, a former Alameda Research software developer, and Can Sun, the former general counsel of FTX who later testified against Sam Bankman-Fried at his criminal trial. The exchange grew out of the Backpack self-custody wallet, built by the team behind the Mad Lads NFT collection, and launched publicly in October 2023.
Is Backpack Exchange regulated?
Yes, in two jurisdictions. It holds an Exchange Services License from Dubai's Virtual Assets Regulatory Authority (VARA) via the entity Trek Labs Ltd FZE, though that license covers spot trading only and excludes futures and margin trading for UAE users. Separately, its Cyprus-based Backpack EU arm holds a MiFID II license, obtained through its 2025 acquisition of FTX EU, which lets it offer regulated perpetual futures to EU customers.
What happened with Backpack and FTX EU?
In January 2025, Backpack agreed to acquire FTX EU, the former FTX.com EU entity, for $32.7 million, in a deal approved by the FTX bankruptcy court and Cyprus' securities regulator, CySEC. Backpack began repaying FTX EU customers' euro balances from April 2025, and in September 2025 used the acquired MiFID II license to launch Backpack EU, a regulated perpetuals exchange offering 40+ pairs at up to 10x leverage.
What are Backpack's trading fees?
At the base tier, spot trading costs around 0.08% maker and 0.10% taker, while perpetual futures cost around 0.02% maker and 0.05% taker. Fees are recalculated hourly and discounted by 30-day trading volume and BP token stake; the USDT/USDC pair trades fee-free.
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