Exchanges· ★★★· neutral·

Backpack founder says about 90% of firm's capital was on FTX at collapse

  • —Backpack lost about $14.5 million in the FTX collapse, or 88-90% of its operating capital
  • —FTX Ventures co-led a $20 million funding round in Backpack weeks before the collapse
  • —Backpack bought FTX Europe for $32.7 million in January 2025, including a MiFID II license
  • —By mid-2026 Backpack reported over $420 billion in cumulative volume and 420,000 verified users
Why it matters: The case shows how concentrated custody risk at a single exchange can wipe out a company's capital, and explains why Backpack now builds independent balance verification.
Source: Crypto Briefing
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