Backpack Starts Claim Process for FTX EU Fund After Acquiring FTX Subsidiary

Key Takeaways:

• Backpack has opened the fund claim process for former FTX EU customers following its acquisition of the entity.
• This process involves two key steps: first, KYC verification to confirm identity, and second, the fund withdrawal phase, with specific details to be announced soon.
• This fund recovery plan is separate from the global FTX creditor repayment efforts currently being managed by Kraken and BitGo, following the FTX EU acquisition.

Backpack, a cryptocurrency exchange founded by former FTX and Alameda Research executives, has initiated the claims process for European customers affected by FTX’s collapse. Announced on April 1, this move marks a significant step in distributing recovered assets following Backpack’s acquisition of FTX’s former European arm, FTX EU.

The fund recovery process involves two distinct steps, managed by Backpack EU:

Step 1: KYC Verification (Now Live)

Former FTX EU users first need to create an account on the dedicated Backpack EU claims portal: eu.backpack.exchange/claim. Most importantly, users have to fill in the Know Your Customer (KYC) verification with exactly the same personal information they held for their original FTX EU account. Upon successful verification, users will see their final claim balance in EUR on their account dashboard.

Step 2: Distribution & withdrawal of the funds (Coming Soon)

Verified users will be notified by email when the payment phase is turned on. The confirmed Euro balance can then be withdrawn by logging in to the Backpack EU platform. Backpack will provide an update soon regarding the exact timeline for Step 2 activation. Users are encouraged to stay updated through Backpack’s official channels to avoid missing any important deadlines or requirements.

Also, please keep in mind that all open positions of FTX EU customers were completely liquidated into Euros at market prices at the time of when FTX stopped functioning. As a result, users will receive the Euro equivalent of their holdings, calculated based on market prices at the time FTX ceased operations. To learn more, Backpack EU has a FAQ section available on their website.

The global FTX bankruptcy process with partners such as Kraken and BitGo involves the handling of repayment of creditors, but Backpack’s function regarding funds for FTX EU is unprecedented. It is the direct result of Backpack buying FTX EU, a deal that was formally approved by both the U.S. FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC) in December of last year.

This regulatory go-ahead was also critical. This not only positioned Backpack to be able to steward the return of FTX EU customer funds, but also permitted the exchange to appropriate FTX EU’s valuable European operating license. Backpack plans to reactivate this license, and eventually provide customers across the EU with a complete range of regulated cryptocurrency derivatives trading services. By securing regulatory approval, Backpack positions itself as a major player in the European crypto market, aiming to rebuild trust among former FTX users. Backpack’s claims process and acquisition reflect its strategy to enter the regulated European market and support users affected by FTX’s collapse.

The launch of the claims process for FTX EU, managed by Backpack, comes amid the broader resolution of the FTX Chapter 11 bankruptcy. A U.S. bankruptcy judge approved the broad-based reorganization plan, paving the way for distributions to what could be hundreds of thousands — if not millions — of creditors around the world. The $13 billion repayment effort began on Feb. 18. Creditors with claims under $50,000 will get full repayment plus 9% interest by April 11. The next phase, covering larger claims, starts May 30, with FTX EU users claiming via Backpack.

More News: FTX Finds New Life with Backpack Exchange — What’s Next?

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