--- title: "FTX EU Ltd in Cyprus: suspension, shortfall and sale to Backpack" language: en canonical: https://dossiertwist.com/dossiers/ftx-trading-ltd/ftx-eu/ as_of: 2026-10-21 keywords: ["FTX Trading Ltd","FTX.com","FTX Trading Limited","Sam Bankman-Fried","Alameda Research","Paper Bird Inc.","Dotcom Silo","FTX Digital Markets","FTX Europe AG","FTX EU Ltd","FTX Japan","West Realm Shires","FTT","Chapter 11","FTX Recovery Trust","John J. Ray III","Caroline Ellison","Gary Wang","Nishad Singh","CFTC consent order"] --- # FTX EU Ltd in Cyprus: suspension, shortfall and sale to Backpack - Also known as: K-DNA Financial Services Ltd · Trek Labs Europe Ltd - Jurisdiction: Cyprus (CY) - Company register: 335683 (Cyprus company registration number as listed by CySEC) - LEI: 2138001ME4Z9Z8DZNS52 **Question.** What happened to FTX EU Ltd, the Cypriot firm that onboarded FTX's European customers? **Answer.** FTX EU Ltd, formerly K-DNA Financial Services Ltd, is a Cypriot investment firm that FTX Europe AG acquired for about €2 million, the shares passing to it in 2022, and that the debtors describe as responsible for onboarding European customers to FTX.com. CySEC suspended its authorisation from 11 November 2022, and a later reconciliation found that it had not kept enough segregated assets to repay its customers. Sold in 2024 to former insiders of FTX Europe, it was then, according to Backpack, bought by Backpack, a sale the FTX estate, according to news reports, said it had not known about; renamed Trek Labs Europe Ltd and trading as Backpack EU, it had its suspension lifted by CySEC on 23 June 2025. ## From K-DNA to FTX EU - Analysis: FTX 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. [src-092] [src-122] [src-068] ## Suspension and shortfall - Analysis: CySEC 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. [src-034] [src-033] [src-068] ## The sale to Backpack - Analysis: FTX 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. [src-067] [src-068] [src-005] [src-052] [src-112] - Documented: As part of the settlement, on 7 February 2024 Gruhn, Matzke and Lorem Ipsum UG agreed in a share and asset purchase agreement to cause CredoMedia GmbH to buy FTX EU Ltd, FTX Switzerland GmbH, FTX Trading GmbH, FTX Certificates GmbH, FTX Structured Products AG and operating assets of FTX Europe for $32.7 million. The Bankruptcy Court approved the sale to these former insiders of FTX Europe on 18 March 2024 and it closed on 10 May 2024. An earlier debtors' motion of 4 January 2024 had proposed that FTX Trading Ltd. buy FTX Europe's shares in FTX EU Ltd and FTX Switzerland GmbH and that the Chapter 11 cases of FTX Europe AG, FTX Certificates GmbH, FTX Crypto Services Ltd, FTX Structured Products AG and FTX Trading GmbH be dismissed. [src-067] [src-068] [src-005] - Qualification: The purchase agreement lists FTX Trading GmbH among FTX Europe's subsidiaries, whereas the November 2022 ownership statement lists it as 100% owned by FTX Trading Ltd. - Attributed: In January 2025 two crypto-industry news reports said the FTX estate had complained that Backpack Exchange's arrangements to pay former FTX EU customers were unauthorized; according to one of them, the estate said it had not been aware that Backpack bought FTX EU, disclaimed responsibility for repaying FTX EU customers and said it could not verify Backpack's statements. One report said the share transfer to Backpack was still awaited. [src-052] [src-112] - Qualification: The estate's statement itself was not retained; the account of it comes from the news reports. - Response: Backpack said it had bought FTX EU Ltd from Gruhn and Matzke, a transaction reflected in public records since June 2024 and approved by CySEC, and told one outlet that it paid $32.7 million in April 2024. Gruhn said he had started a CySEC change-of-control procedure in May 2024, that FTX EU would be renamed Backpack EU and would distribute the former FTX EU funds to clients, and that FTX had no direct relationship with Backpack. - Outcome: CySEC's register lists the firm (registration 335683, licence 273/15) as Trek Labs Europe Ltd, previous name FTX EU Ltd, with the trade name Backpack EU; on 23 June 2025 CySEC lifted the suspension of its authorisation after finding it compliant. - Analysis: CySEC'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. [src-015] [src-122] [src-099] [src-052] [src-112] ## Sources - [src-092] Court record source · src-092 - [src-122] GLEIF LEI record 2138001ME4Z9Z8DZNS52 (FTX EU Ltd / Trek Labs Europe Ltd), Global Legal Entity Identifier Foundation (GLEIF), 2026-10-21 - [src-068] Court record source · src-068 - [src-034] Suspension of authorisation of FTX EU Ltd by the Cyprus Securities and Exchange Commission, Malta Financial Services Authority, 2022-11-17 - [src-033] CySEC decision extending the suspension of the CIF licence of FTX (EU) Ltd, Cyprus Securities and Exchange Commission, 2024-11-05 - [src-067] Court record source · src-067 - [src-005] Court record source · src-005 - [src-052] Media source · src-052 - [src-112] Media source · src-112 - [src-015] CySEC register entry for Trek Labs Europe Ltd (formerly FTX EU Ltd), Cyprus Securities and Exchange Commission - [src-099] CySEC announcement on the suspension of the authorisation of Trek Labs Europe Ltd, Cyprus Securities and Exchange Commission