Backpack had about 90% of its capital on FTX at collapse, says founder

Armani Ferrante's exchange lost roughly $14.5 million in the 2022 meltdown, then bought FTX's European arm a little over two years later Backpack had about 90% of its capital parked on FTX when the exchange imploded in November 2022. Founder and CEO Armani Ferrante has been retelling that story publicly, and it is not the usual founder origin myth. Ferrante’s account matters now because Backpack is no longer a scrappy Solana wallet. It is a regulated exchange that owns what used to be FTX Europe. The research behind Ferrante’s comments puts the loss at approximately $14.5 million. That figure represents somewhere between 88% and 90% of Backpack’s operating capital at the time. The timing made it worse.

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