FTX EU Ltd in Cyprus: suspension, shortfall and sale to Backpack

analysisFTX EU Ltd was formerly K-DNA Financial Services Ltd, incorporated in Cyprus on 10 September 2014 and licensed by CySEC as an investment firm on 23 April 2015. According to the debtors, Matzke personally agreed on 22 October 2021 to buy K-DNA from Proverial Ltd. and another shareholder for €2 million and assigned his rights to DAAG; after CySEC's non-objection of 6 September 2022 the shares passed to FTX Europe AG, which became sole owner. The disclosure statement describes FTX EU ("FTX Cyprus") as responsible for onboarding European customers to FTX.com. ^{1 2 3}

analysisCySEC suspended FTX EU Ltd's authorisation in full from 11 November 2022 on suspicion that it did not meet the conditions on the suitability of its management and on safeguarding client assets; during the suspension it could not provide services or take new clients but could, at clients' wish, complete their transactions and return their funds and instruments. A reconciliation carried out afterwards with the debtors' advisers found that it had not kept enough segregated assets to repay its customers and faced a substantial shortfall, so that a quick return of customer funds, a key condition for lifting the suspension, was impossible. CySEC extended the suspension on 30 October 2024. ^{1 2 3}

analysisFTX EU was among the companies whose sale to former insiders of FTX Europe, through CredoMedia GmbH, the Bankruptcy Court approved in March 2024. In January 2025 two crypto-industry news reports said the FTX estate had complained that Backpack Exchange's plans to pay former FTX EU customers were unauthorized; according to one, the estate said it had not known that Backpack bought FTX EU, disclaimed responsibility for repaying its customers and could not verify Backpack's statements, and the share transfer was still awaited. The estate's statement itself was not retained. Backpack said it had bought FTX EU from Gruhn and Matzke in a transaction approved by CySEC and public since June 2024, and told one outlet it paid $32.7 million in April 2024; Gruhn said he had begun a change-of-control procedure with CySEC in May 2024, that FTX EU would become Backpack EU and distribute the former FTX EU funds to clients, and that FTX had no direct relationship with Backpack. ^{1 2 3 4 5}

analysisCySEC's register now lists the firm, registration 335683 and licence 273/15, as Trek Labs Europe Ltd, formerly FTX EU Ltd, trading as Backpack EU, with an address in Nicosia; GLEIF records the same company's earlier names as K-DNA Financial Services Ltd and FTX EU Ltd and reports an exception instead of naming a parent. On 23 June 2025 CySEC recalled the suspension, having been satisfied that the company complied. ^{6 7 8 4 5}